It is derived from a French word meaning "end". It is also a shortened version of the word buttocks.
In other cases, the butt means the end of something: cigarette butt, the butt of a gun, butt of a joke.
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Some people have "fat butts" because they have eaten more calories per day and have become overweight or obese. Other people have large posteriors due to cultural genetics such as the stereotype of a latina woman.
Though this is weird, we need our butts for cushion. Also for the muscles in the anus. The anus pushes the waste (poop) out your digestive system.