S.H.
2 years old is a time of GREAT flux and change in a child, all around, and this includes sleep patterns too.
It really is not an easy time for a child... the 2's are basically a lot of "growing pains" and being told how "not" to do things and being told "no" all the time, and being at the end of irritated parents looks.
The best thing you can do is offer consistency and comfort. At this age- developmentally & cognitively- a child starts to develop 'night-time' fears and nightmares. They can't help it... we cannot wish it out of them or make their dreaming stop, nor their fears.
Imagine, being locked in a room, gated in, lights off, left alone, you are told to just cry and cry and cry and NO ONE will come and support you and that all you will get is a verbal "shhhh." Imagine, if when you were a teen or even now... that you could not sleep and just needed some extra emotional support...but all your Hubby would do is turn his back on you, tell you "get over it, you are irritating" and tell you "be independent...if I help you now and empathize with you, you will get TOO dependent and turn into a wimp."
HOW a child overcomes this transition in their life, depends on how they are understood or not.
For us, it didn't matter "where" my daughter slept.... all that mattered was that she DID get a good night's sleep & that it was peaceful. And no, we did not believe in punishment/threats/rewards. To us, certain things like eating, sleeping, and toileting- is not a matter where you manipulate a child into it.
My daughter often would just want to sleep on the floor of her room. Or, she'd make a pile of blankets on the floor of our room and called it her "nest" and she'd want to sleep there. Or, she'd want to sleep on the sofa. Or, I co-slept with her, as needed. The thing is we kept it flexible... because a child's ever-evolving development is never static...
And no, contrary to what many say, our daughter nor my son, is a wimpy/over-dependent child. And I am one of those "co-sleepers" and I co-sleep with my children IF it is needed.
We have a floor futon on the floor in our bedroom. That is where the kids are allowed to sleep, with us. Its perfectly fine with us. And if they want company or are sick, I just lay next to them until they fall asleep... then I can get up and leave and do whatever I want!
Its a happy medium that works for us.
My daughter, even at 5 years old and even now at 6 years old, has night-time 'fears.' This is normal. Just the dark, the noises outside or hearing the wind/rain at night sometimes just gets her uneasy and 'scared' to go to bed at night. So, can you imagine a 2 year old experiencing this? They are not yet mature enough to FULLY understand "abstract" things like this or making sense of their imaginations.
2 years old to 3 years old is a hard transition for many kids, they are changing SO SO much at this age....and they have to deal with so many things and "expectations" that adults have on them. So, it's really not easy for them either... nor do they have "coping skills" at this age. AND on top of that, their "emotions" are still developing too. Thus, for us, we never expect our kids to act "perfectly" at this age. BUT we have definite bedtimes and sleep routines which we enforce....and this consistency helps too.
All the best,
Susan