Anchor text helps both users and search engines understand what the page they are about to land on is about, so it is important for the following two reasons:

Enhances User Experience: Anchor text helps users understand the destination or topic of the linked page. It provides context and encourages users to click on the link for more information. This creates an optimal user experience because users get the content they are expecting to find.

Helps Search Engines: Search engines use anchor text to understand the content and relevance of the linked page. It's one of the many factors search engines consider when determining a page's ranking in search results, although not as much as it used to be. Properly optimized anchor text can help improve a page's visibility in search engine results.