Short answer: The sine function takes values from $-1$ to $1$ because that's just the nature of the function.
Longer answer:
The elementary definition of the sine function for angles from $0$ to $\pi/2$ is that it is the ratio of the length of one (opposite to the corner of which the sine is calculated) catete of a right angle triangle to the hypothenuse of the triangle, and since the hypothenuse is always the longest side of a right angle triangle, the sine of an angle will always be smaller than $1$ (and, for this definition, larger than $0$).
The more general definition of the function is that the sine of an angle is equal to the height of the point on the unit circle given the correct angle, and since the unit circle reaches only heights between $-1$ and $1$, so does the sine function.
For your other question, the answer is fairly simple. The unit circle can be defined as the set $$S=\{(x,y)| x^2+y^2 = 1\}$$
Using the definition of the sine and cosine functions, it is simple to show that this set is equal to the set $$\{(\cos \theta, \sin\theta)|\theta\in[0,2\pi)\}.$$
The circle centered around $0$ with a radius different than $1$, say the radius $R\neq 1$, is defined as $$S_R=\{(x,y)| x^2+y^2 = R^2\}$$
and can be shown to be equal to the set
$$\{(R\cos \theta, R\sin\theta)|\theta\in[0,2\pi)\}.$$