How Stuff and ‘For Xml Path’ work in SQL Server?

Table is:

Id Name
1 aaa
1 bbb
1 ccc
1 ddd
1 eee

Required output:

Id abc
1 aaa,bbb,ccc,ddd,eee

Query:

SELECT ID, 
    abc = STUFF(
                 (SELECT ',' + name FROM temp1 FOR XML PATH ('')), 1, 1, ''
               ) 
FROM temp1 GROUP BY id

This query is working properly. But I just need the explanation how it works or is there any other or short way to do this.

I am getting very confused to understand this.