It spreads authority
Search engines treat a link as a vote, including a link you make yourself. A page that has earned backlinks holds authority it can pass on. Link from that page to a deeper one and part of that strength travels along the link, which is why a well-linked internal page can outrank a stronger competitor page that sits alone. Old SEO slang calls this link equity, or link juice. The mechanism has changed in detail since PageRank was first described, but the direction of travel has not: links carry value, and internal links carry it to pages you choose.
