DOS used simple text processing (back when you had things like FILES=20 in config.sys to allow 20 file handles), so opened the file, read the next line, closed the file, then executed the line just read. If the file called another, then the processing continued with that file, so only 1 file handle would be required for a batch file.
Until Microsoft put in the call command, there was no way to get back to the original file (without using tricks like giving the name of the previous file as a parameter, and using temporary files to let the original batch file know it had dome some processing, and could then GOTO the next part of the file).