DEBORAH - My daughter who not active in the church is having her third child blessed. I know she does not understand why the church does this and would like to share some ideas with her. I have done some research and understand that in Luke how the Angel Gabriel came and gave the names of both John and Jesus. I under children need not be saved because they are without sin. It is also a fact that they can also claim the church as their religion and they are taught the truths in primary. But this is still not satisfying me on what and how I want to share why she is doing the right things. However, at the same time, she is not raising the children in the faith, not even allowing them to go to church. So then my next question would be, why is she and is it even necessary to have my grandson blessed?

JOEL - The blessing of children was done during the time of Christ(Mark 10:14-16, 3 Ne. 17:11-24), and it occurred in the early years of the restored Church
The ordinance of naming and blessing of children is not a saving ordinance and therefore is not required for salvation or exaltation for anyone, but according to the Doctrine and Covenants it is a commandment from God to LDS parents with children:

"Every member of the church of Christ having children is to bring them unto the elders before the church, who are to lay their hands upon them in the name of Jesus Christ, and bless them in his name" (D&C 20:70).

The main purposes for doing this is to present the child to the congregation, declaring that the child will be raised in the gospel; to give the child a blessing according to inspiration from the Holy Ghost; and to give them a name that will be known on the records of the church. On this occaision a formal membership record is made for the child making them a child of record.
Often less active members like to have their children named and blessed in church just in case they decide that they want to be active members when they grow up. The inactive parents might still place some value and faith in a priesthood blessing even though they are not active in the Church. The reasons can vary so you would have to ask your daughter why she wants to have it done. But like I said it is not necessary for a person's salvation to have this ordinance although God has told us that it should be done for all children of LDS parents.
There's a good article about this in the Church's April 1989 Liahona magazine at this address: