The planets all orbit in roughly the same plane because the solar system originally formed from a flat disk of dust.
As for why the plane is horizontal rather than vertical… remember that there is no up or down in space, so the solar system could be depicted in any orientation in diagrams, etc and be just as valid. In fact, compared to the flat plane of the **Milky Way Galaxy**, the solar system’s orbital plane is cocked at a steep angle.
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