Sunlight reaches Earth's atmosphere and is scattered in all directions by all the gases and particles in the air. Blue light is scattered in all directions by the tiny molecules of air in Earth's atmosphere. Blue is scattered more than other colors because it travels as shorter, smaller waves. This is why we see a blue sky most of the time.
Closer to the horizon, the sky fades to a lighter blue or white. The sunlight reaching us from low in the sky has passed through even more air than the sunlight reaching us from overhead.