Reading to your child helps her develop her language skills. Because you will be reading many different words and many styles of writing, your child will be exposed to them and will learn as a result. Let your child ask questions about the stories while you read because your answers will help her improve her understanding of them. Start with short stories for a young child, and gradually start reading longer ones so her attention span improves.
Reading is a good way to bond with your child. You both get a break during the day to snuggle up together and read a book. Your child gets time with you when she is your top priority, and she gets exposed to a variety of books at the same time. This will help give your child positive feelings that are related to reading. She'll feel that when you're reading to her, she is important to you.
The range of topics you will cover while reading books to your child is huge, and this will help your child become more creative. She can later play games related to the stories she has heard, or dress up and become the characters. Her mind will recreate what she has heard many times and in many different ways for long afterward.
No matter what your child is interested in, you can get a book that will teach her more on that topic. By doing this, you will teach your child not only about the topic but also that books can open up a whole new world of information in which she can find out as much as she likes about anything she is interested in.