Most things in computer systems are divided into chunks of fixed sizes: bytes, words, cache blocks, pages.
One reason for this is that while hardware can do many things at once, it is hardware and thus, generally can only do what it was designed for. Making bytes of blocks of 8 bits, making words blocks of 4 bytes (32-bit systems) or 8 bytes (64-bit systems) is something that we can design hardware to do, and mostly in parallel.
Not using fixed-sized chunks or blocks, on the other hand, can make things much more difficult for the hardware, so, data structures like strings — an example of data that is highly variable in length — are usually handled with software loops.
Usually these fixed sizes are in powers of 2 (32, 64, etc..) — because division and modulus, which are very useful operations are easy to do in binary for powers of 2.
In summary, we must subdivide data into blocks because, we cannot treat all the data as one lump sum (hardware wise at least), and, treating all data as individual bits is also too cumbersome. So, we chunk or group data into blocks as appropriate for various levels of hardware to deal with in parallel.