Water is called a universal solvent because it can dissolve many different things. This happens because water has special parts called molecules that have a positive end and a negative end, kind of like a magnet.
When you mix something with water, the positive end of the water molecules pulls on the negative parts of the other substance, and the negative end pulls on the positive parts. This helps to break the substance apart and mix it into the water. That's why many things, like salt and sugar, can dissolve in water!