If is an matrix, we can think of it as an operator or transformation acting on a column vector to produce which is another column vector. With this interpretation equation (21) asks for those vectors which are transformed by into constant multiples of themselves [or equivalently into vectors which have the same direction but possibly different magnitude].
If case is an orthogonal matrix, the transformation is a rotation and explains why the absolute value of all the eigenvalues in such case are equal to one, since an ordinary rotation of a vector would not change its magnitude.
The ideas of transformation are very convenient in giving interpretations to many properties of matrices.