Don't be tempted to just use water as this will dilute the coolant mix already present.
Plain water will allow the engine to corrode internally. The coolant includes corrosion inhibitors, which wear out, so this is why the coolant needs replacing every 2-3 years.
Water does not like to spread across surfaces, preferring to form droplets. The coolant includes a "water wetter" (great silly name) that breaks the surface tension and allows the water to make better contact with the surrounding metal, so transferring heat better.
The coolant also includes additives to increase the boiling point and lower the freezing point.
Between coolant changes, the level should not change. It will increase/decrease as it heats and cools. If it needs topping up, find and fix the leak. Leaks can introduce air pockets and localised overheating.