Use an object, a toy block for example and talk with the child or children about where the toy is in relation to another larger object such as toy bucket or a chair. Place the toy on top of the larger object and tell the child the block is on top of the (up turned) bucket, place the block inside of the (righted) bucket and tell the child the block is inside the bucket, place the block under the (up turned) pucket and tell the child the block is under the bucket, you could use a smaller toy and a card board paper towel tube to demonstrate an object going through another object. Use your imagination and then let the child or children use their new skills to demonstrate spatial relationships for you. Ask the child if he or she can put the block on top of the bucket and so on. Play hide and seek with the toys, place three buckets all up turned on the table and hide the block under one of them...can the child find the block hidden UNDER one of the buckets?
Toddlers and two's wont look at you funny when you play these spatial relationship games with them, these are new and exciting concepts for that age group and they will willingly play along and learn about spatial relationships.