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As has been said many times in the world of software development, code is read more often than it is written. So, it’s important to make code easy to read:
Readability of code depends primarily on how space is occupied by letters and symbols.
If the whole universe were black, you wouldn’t be able to tell objects apart. They’d all be a single black mass. Just the same, if a whole file is a mass of code without enough consistent, logical spacing, it’s hard to separate out the pieces. Space is what keeps things separate.
You don’t want too much space, because then it’s hard to tell how things are related. And you don’t want too little, because then it’s hard to tell that things are separate.