Cover letters are often the first thing editors and slush readers see, and it's where you have the opportunity to shine. Done badly, though, they can turn off the reader. Here are the basics every writer should know:
Cover letters only really matter when publishers request them in their submission guidelines or a space for one appears in an online submission form. Several places don't really want them unless they're considering your work, but those that accept cover letters offer an opportunity to say something that elevates your story or novel above the rest of the slush pile. You want to come across as professional, even if you're not pro-published, and you do that by establishing your credentials:
Otherwise, just follow the publisher's guidelines. Keep it short and straightforward, because the cover letter isn't the work you're submitting. And save the text you use for a submission so you aren't starting from a blank page the next time. You'll end up getting a feel for what works best, and revising your approach each time will make the cover letter more useful and relevant.
Some more resources:
Good luck, and Ad Astra!
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updated 8/3/2023