Before this, Mylie (the one on the chair) was slowly moving from chair to chair while Milo watched her. Mylie brought her paw down at him a few times. At one point I thought he was going to swat her but he didn't and eventually just laid down on his side as he was doing at the beginning of video.
In this video I would say he is walking cautiously because the other cat is overhead. (One sitting on the wall) then, the one overhead does nothing so he begins to play. A good interaction.