Cheese Dragons are not actually alive. They are enchanted items of food that act almost identically to dragons. They have no need to eat, but they must “live” in humid environments or they will dry out and harden.

Mozzarella Cheese is aware that he is cheese. When chased by humans he simply flies away-- a task that's difficult for him as his wings are covered in holes. Nevertheless, he still manages to escape the hunters before he is turned into little blocks of cheese. Unfortunately, his strong smell easily leads humans to his location. Mozzarella Cheese is rarely seen by the other dragons because he almost always on the run from those who wish to eat him. His humid environment does nothing to keep to predators away. Everyone knows that Mozzarella Cheese isn't really alive, but he is made of food and everyone likes that.