Cognitive load is what matters

Introducing intermediate variables is what I call "indirection". You're adding another step to someone reading the code.

Let's take a recipe:

   Ingredients:
   large bowl
   2 eggs
   200 grams sugar
   500 grams flour
   1/2 tsp soda

   Steps:

   Crack the eggs into a bowl. Add sugar and whisk. Sift the flower. Add the soda.

When following the instruction, you have to always refer back to the ingredients list and search for the quantity, which massively burdens you with "cognitive load". However, if you inline things:

   Crack 2 eggs into a large bowl. Add 200g sugar and whisk. Sift 500g of flower. Add 1/2 tsp soda.

Much easier to follow!

When making a recipe you usually need to buy some or all of the ingredients. You also want to collect them all together beforehand since it makes things go a lot more smoothly. If they didn’t list them separately it would be easier to miss one.

This probably isn't entirely what you meant, but people who do this code smell drive me starkraving mad

  shipToAddress(getShippingAddress(getStreet()),calculateShipping(getShippingAddress(getStreet())))

because as soon as one needs to update the mechanism for getting the shipping address, congratulations, you're updating it everywhere -- or not, nothing matters in this timeline

your example makes me question how much you bake.

The instructions are simple to remember, the ingredient quantities are not. Once i have read the recipe, i have a clear idea what i need to do. But i may need to look up the quantities. Looking for those in a block of text is a waste of time and error prone. Having a recipe formatted like the 2nd example is only useful for a someone inexperienced with baking.

Its also difficult to buy or bring out the ingredients if they're hidden in text. Or know if i can bake something based on what i have or not.

If you've baked an really old recipe from a book, you may find instructions like "Mix the ingredients, put in a pan, bake until brown on high heat", with a list of quantities and not even a picture to know what it is you're baking. An experienced baker will know the right order and tools, and how their oven behaves, so it's not written out at all.

If i look for recipes online, seeing the instructions written like you have makes me reluctant to trust the author, and also makes me annoyed when trying to follow or plan out the process.

Redundancy like that makes people like me feel that we missed something, and ruins forward progress. If you started "Crack 1 egg into the bowl." I'd move through it at light speed. When you say "Crack 2 eggs..." I think, "did I miss some ingredients, aren't there only two eggs?" and I rescan the entire ingredient list.

Then, still unsure, I go back and read the end of the sentence. "...into a large bowl."

Another large bowl? Wasn't there only one bowl? Was there another small bowl? Were the other eggs supposed to be in the small bowl? Is there another recipe listed separately where I'm supposed to crack the other egg (that might exist) into a small bowl? A single egg would only need a small bowl. Yes, there's probably another part of the recipe that is a sauce or filling or something that needs you to crack one egg into a small bowl. Let me reread everything on this webpage until I find something referred to that might be a necessary part of finishing this recipe, find the instructions to make that, then come back to this. Also, I have to reevaluate whether I even have enough eggs and bowls to make this recipe. I've read the entire page again, and I can't find what I'm missing. Maybe I'll google another, similar recipe, and they'll be a sauce or side that is mandatory for this dish that everybody already knows about but me, and it will be obvious. Ok, this is something similar, and it's served with some sort of a lemon sauce? I don't think I like lemon sauces. I'm not going to make this, I'm not even sure if I can. I hate trying to find recipes on the internet.