Designers apply whitespace to give their designs "a clean, uncluttered feel". We can apply the same principle in written documents.
This does not just mean "break up into lots of paragraphs" - also consider:
The spacing between a code block or image, and a block of text.
Instead of
Prefer
The spacing between lines in lists
Instead of
Prefer
Good spacing aids readability, and can break up otherwise dense blocks of information. This helps to avoid overwhelming the reader.