From the Catechism of the Catholic Church:
The senses of Scripture
115 According to an ancient tradition, one can distinguish between two senses of Scripture: the literal and the spiritual, the latter being subdivided into the allegorical, moral and anagogical senses. The profound concordance of the four senses guarantees all its richness to the living reading of Scripture in the Church.
116 The literal sense is the meaning conveyed by the words of Scripture and discovered by exegesis, following the rules of sound interpretation: "All other senses of Sacred Scripture are based on the literal."83
117 The spiritual sense. Thanks to the unity of God's plan, not only the text of Scripture but also the realities and events about which it speaks can be signs.
1. The allegorical sense. We can acquire a more profound understanding of events by recognizing their significance in Christ; thus the crossing of the Red Sea is a sign or type of Christ's victory and also of Christian Baptism.84
2. The moral sense. The events reported in Scripture ought to lead us to act justly. As St. Paul says, they were written "for our instruction".85
3. The anagogical sense (Greek: anagoge, "leading"). We can view realities and events in terms of their eternal significance, leading us toward our true homeland: thus the Church on earth is a sign of the heavenly Jerusalem.86
118 A medieval couplet summarizes the significance of the four senses:
The Letter speaks of deeds; Allegory to faith;
The Moral how to act; Anagogy our destiny.87
119 "It is the task of exegetes to work, according to these rules, towards a better understanding and explanation of the meaning of Sacred Scripture in order that their research may help the Church to form a firmer judgment. For, of course, all that has been said about the manner of interpreting Scripture is ultimately subject to the judgment of the Church which exercises the divinely conferred commission and ministry of watching over and interpreting the Word of God."88
But I would not believe in the Gospel, had not the authority of the Catholic Church already moved me.89
The Bible is a collection of writings, not a single book written in only one style and with only one purpose. Each author conveyed something about God to us, but each in his own way and to certain persons and for various reasons. This is why the Bible needs an inspired interpreter, which is what Jesus gave us in the Church when he commissioned the Apostles to teach and preach in his name. For instance, the NT is the written accounts of Jesus' life and mission, a brief history of the very early Church, the instructions and admonitions of the Apostles, with the singular visionary work of St. John in Revelation. We can see the imprint of each author's personality, mission, charism, etc. in what he wrote.
But, in a nutshell, the Catholic Church holds that the Bible is inspired of the Holy Spirit and so reliable in all it tells us about God and the human condition.
It's history is trustworthy and it cannot be written off as mere fairy tales, which is very different from writing in the mythological form. Mythology, as it is truly understood, tells us eternal truths using the language of symbolism. However, most of the Bible is not written in the mythological style, but as plain history, poetry, biography (told not for biographical information only or necessarily as we moderns would write it), prose, etc. The Bible is a rich cultural and historical book, but it's much more, as well.
We Catholics embrace all that the Bible is, and do not employ it to prove anything for it is a witness to the work of God among men not a proof-text for doctrines/dogmas, although all that the Church teaches is upheld in Scripture or finds its origins in it. I hope that helps. :)