Here is the complete code you were asking about. I happen to be the author, so let me explain:
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output omit-xml-declaration="yes" indent="yes"/>
<xsl:strip-space elements="*"/>
The following template overrides the XSLT built-in template for element nodes.
It matches every 6k+1th gallery
element. It cretes a tr
element and inside its body puts the results of processing this gallery
element togeether with the next 5. The processing is done in a special mode ("proc") to distinguish this from the default anonymous mode in which the XSLT built-in templates started and continue to operate.
<xsl:template match="gallery[position() mod 6 = 1]">
<tr>
<xsl:apply-templates mode="proc"
select=".|following-sibling::gallery[not(position() > 5)]"
/>
</tr>
</xsl:template>
The following template is invoked in mode "proc" to process every gallery
element in a group of 6 that should be in the same row.
<xsl:template match="gallery" mode="proc">
<td>
<img src="{gallery-image-location}" alt="{gallery-image-alt}"/>
</td>
</xsl:template>
The following template overrides the default processing of the XSLT built-in templates for all gallery
elements, whose position is not of the type 6k+1 (they are not starting a new 6-tuple). It says simply not to do anything with any such element, because these elements are already processed in "proc" mode.
<xsl:template match="gallery[not(position() mod 6 = 1)]"/>
</xsl:stylesheet>
You need to acquaint yourself with XSLT's processing model, default processing and built-in templates.