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Box beds, also known as cupboard beds, were a common feature in European households during the Middle Ages because they provided warmth, privacy, and space:

Warmth
The sheltered environment of a box bed trapped warm air, which was especially helpful in homes that only had a wood fire for heat or in cold European winters. In the Netherlands, the small area of a closet-bed could be warmed by body heat at night, so the stove didn't need to be kept stoked.

Privacy
The closed sleeping chamber created a sense of privacy in living situations where families often slept in one room.

Space
Box beds could be used as spillover places for people to sleep when there wasn't enough space elsewhere. In the Netherlands, a closet-bed could be built into the living room and closed off during the day, making a separate bedroom unnecessary.

Separation
Box beds were often found in country houses, where people sometimes used them to separate themselves from livestock.
Box beds were in use in some places well into the 20th century, but eventually became associated with poverty and country life, and fell out of fashion. However, similar pieces of furniture are making a comeback, and box beds are still used in studio apartments today.