“But if we walk in the light, as he is in the light, we have fellowship one with another, and the blood of Jesus Christ his Son cleanseth us from all sin.”  1 John 1:7

First information we get from the main verse is God dwells in light- the light- and this light influences his view of everything and his corresponding actions and responses.
“That was the true Light, which lighteth every man that cometh into the world.”  John 1:9
“The entrance of thy words giveth light; it giveth understanding unto the simple.”  Psalms 119:130
The word of God is that light. The word of God is God! God influences his views of everything; he dwells in the light of himself- no wonder he is God; our great God!
The good news is he says we ought to walk in that light, so we must be really special; how is it possible that we have the ability to even dwell in and then walk in the same light as God himself? We got born again! We received eternal life and now we can!
The word of God is that light, God has no view or response outside his word, so if we have this holy word, then we can always anticipate God’s response and even better, seeing we have his life, we can respond the way he does- and that is called ‘walking in his light!’