The equipment and supplies for preparing meals usually are in one room. Plumbing, electrical and heating devices often are together in the basement. The coat closet is near the front door. Note that houses do not have to be designed this way. Good software design follows the same principle of placing related items together.
Functional locality implies levels of abstraction.
Each room in a house has a purpose, with related items for that purpose in the room. At a broader view though, good building architecture places related rooms together. Rooms for nighttime use are at the other end of the house or upstairs. Office buildings place mechanical infrastructure rooms in one area, away from business people. Good software architecture also uses levels of abstraction to achieve functional locality.