Well, Woody was originally the favorite toy of his owner and has gone through many experiences, like being passed down and having to adapt to new toys coming into the collection.
In Stardew Valley, Elliott is a character who is quite into literature. His reading of the novel could potentially be related to his own story arc. For example, if he's reading a novel about adventure on the sea, it might reflect his own dreams of a more exciting and perhaps romantic life away from the valley. However, since the game doesn't really spell out specifically which novel he's reading all the time, we can only make assumptions based on his character traits. He seems like the type who would enjoy a novel with complex characters and a deep, emotional plot.
One great Stardew fanfic is 'A New Beginning in Stardew Valley'. It has an interesting plot where the main character brings new farming techniques to the valley. Another good one is 'Love in the Valley' which focuses on the romantic relationships in the game. And 'The Mysterious Stardew Creature' is also popular as it adds a touch of mystery to the Stardew world.
In the context of the Winter Star in Stardew Valley, Willy's story could involve his memories of past winters. He could recall the times when he went out on the coldest days to catch that one special fish for the town's feast. He might also tell stories about how he got his start as a fisherman. His love for the ocean is unwavering, and during the Winter Star, he could be reminiscing about all the different sea creatures he's encountered over the years.