If the volume of oil contained in the engine was the same as the volume of oil between the low and full indicators, it would mean that there would be no oil remaining if the level dropped to the low mark.
By having more oil than that indicated between marks, there's sufficient oil to continue safe operation of the engine and to allow continued operation to travel to the location necessary to add oil to the full mark.
I have seen oil indications, or rather, I have seen no oil indications on a dipstick, well below the low mark, yet there was still oil in the engine and no harm was done.
Oil provides for cooling as well as lubrication. That's especially valid in systems known as dry sump lubrication, where the volume of oil in the very shallow oil pan is only the amount required to provide appropriate splash lubrication, while the tank contains a substantially greater amount.
Yet again, more oil provides for a greater level of dilution of contaminants such as particulates missed by the filter (or not yet filtered) and moisture from condensation or other sources.
Motor vehicle engines have evolved over the years and engineers desire to keep costs to a minimum (less oil means less expense) but also to keep the lifespan of the engine as long as possible.