Human ears and the brain work together to give audio clues. The side where the louder sound comes from and a slight delay of the sound arriving in the right vs the left ear allows the brain to process a direction where the sound is coming from.
But we can also use the echo delay to give cues as to the space that we’re in. A large chamber or room will have sound bouncing off the walls, floors and ceiling and coming back to the ear with a bit more delay. A small room much less delay. This allows the brain to give an idea what “space” you are in. So by mimicking these delays, spatial audio tricks the brain into giving different spatial cues.
Stereo gives direction, spatial audio gives the impression of space.
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