While the body is healing after the surgery, several mechanisms are activated that involve creation and contraction of scar tissue. This affects mainly the diameter, but also the length of the vagina, and works quite efficiently during the first few months. Without dilation, diameter would be lost very quickly.
After a few months, the body is no longer creating or contracting scar tissue, and partial conversion of the scar tissue into other tissue keeps going on, but this process does not cause contraction any more.
Another reason for the need to dilate is that the inner end of the surgically created vagina is not attached to an uterus, which in turn would be supported and held in place by ligaments. The pressure in the pelvic cavity would tend to push it out very slowly, and we need to counteract that until the connective tissue around it settles into a state where it gives enough support, and dilation may become less frequent.
What I am writing here is just what I remember from reading one or two books a long time ago, and it may all be completely wrong. Use it at your own risk.