It's a way to control the visibilitly/scope of the variables.
Working variables are a way to have variables used by an Action Block, but not visible outside the Action Block.
Prior to the new working variables feature, any variables used in an Action Block were visible in calls to the Action Block. The problem with that is that it cluttered up the Action Block call -- the Action Block might actually only return a single value, but all of its internal working variables would always be listed, e.g.
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Now you can make those variables visible only within the Action Block. It makes calling the Action Block less messy.