You use a new level to create the second floor.
You can download the project here to see how it's done.
The level will make a character stand on the elevation of that level. You can build whatever you want under it. If you leave it empty the character will float at the set elevation.
You can use walls and a room but instead you can just use an (elevated) box if you want. A room has the advantage that a staircase can cut a hole in it but a box displays a texture better on the sides.
To really understand how levels work you can read my manual "Levels explained" at Dodecagon.nl
To keep it really simple you can use your 8x8 box. If you drag a character to the top of the box it will automatically elevate to the top of the box.
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