I was snuggling with Daisy(dog) on my bed when Dad came to tuck me in later. He scooched Daisy over gently and lay down next to me on the blanket.
What does scooch mean here?
It means move slightly away.
So in this context, Dad gently moved Daisy away from it's current position, so that Dad can lay down where Daisy once was at.
Hope that helps!