Re 3:15 "I know your works, that you are neither cold nor hot. I could wish you were cold or hot.
16 "So then, because you are lukewarm, and neither cold nor hot, I will vomit you out of My mouth.
First of all, some background. Laodecia was known for lukewarm water that was unacceptable to many who drank it. People there were known to spit their water out. On the northeast, they sourced hot water, while on the southeast, warm water.
The city of Laodecia built aqueducts to obtain these waters. But as they got to Laodecia, these waters became lukewarm from the combination of both the hot and cold.
Now, when the Lord Jesus said here: "I could wish you were cold or hot" He was saying that an extreme, clear and unmistakable spiritual condition would be better than what there state was, which was lukewarm.
You see, their lukewarm spiritual condition was deceptive. A lot of them thought that they were blazing, sizzling and passionate enough for God, that they were okay with God. But they were actually unacceptable --- lukewarm.
Re 3:17 "Because you say, 'I am rich, have become wealthy, and have need of nothing' --and do not know that you are wretched, miserable, poor, blind, and naked--
18 "I counsel you to buy from Me gold refined in the fire, that you may be rich; and white garments, that you may be clothed, that the shame of your nakedness may not be revealed; and anoint your eyes with eye salve, that you may see.
Why did the Lord Jesus prefer that they were either hot or cold?
Because, if hot, they can be truly encouraged to go on. If cold, they could easily detect what's wrong with themselves and be more open to a much needed rebuke.