A light-year is a distance, so why does it sound like a time?
From the shelf below, drag the Moon or any star and drop it in the night sky. Its light flies to the child's telescope.
Drop it anywhere here
Drag the lantern along the road below, back into the past. If light that set out in that year is only now reaching our eyes, how far away did it come from?

It reads far more easily after you have tried it.
The further away, the older the light. So to look at the very distant universe is to look at the very old universe. That is why a bigger telescope sees further back in time. Everything we see is a little in the past. Even the things in this room are a very short past.