let's start with inner COUNTIFS and do this in terms of arrays. if you run:
=ARRAYFORMULA(COUNTIFS(A2:A, A2:A))
it means that you are "counting unique values in A column, only if there is a value in A column". so no value in A column returns 0 and the rest is counted. the first range A2:A stands for a range we search on and the 2nd A2:A range is a criterion - if the cell in A column is empty it returns FALSE eg. 0 and if it's not empty it returns TRUE in form of a count of unique item. see:

and:

now let's take a look at the outer COUNTIFS. the 4th argument of outer COUNTIFS is an array so it overrides the 2nd argument of outer COUNTIFS which is just a single value. so if we run it as is the result is a sum of all ones in K column:
=ARRAYFORMULA(COUNTIFS(COUNTIFS(A2:A, A2:A), 1))

therefore to understand it in its array form we need to alter it a bit by adding the 3rd and 4th arguments to the outer COUNTIFS:
=ARRAYFORMULA(COUNTIFS(COUNTIFS(A2:A, A2:A), 1,
ROW(A2:A), "<="&ROW(A2:A)))

which is essentially the:
=ARRAYFORMULA(COUNTIFS(K2:K, 1,
ROW(A2:A), "<="&ROW(A2:A)))

and that translates as "count how many 1's are in K2:K range on every row ROW(A2:A) up to the current row of every row "<="&ROW(A2:A) and loop this row-by-row". in other words, it is the same as you would drag =SUM(K$2:K2) down the column

important note
this formula works only if all values in A column are unique. if they aren't then the formula will brake:

the correct formula for this task would be:
=ARRAYFORMULA(VLOOKUP(VLOOKUP(ROW(A2:A), IF(A2:A<>"", {ROW(A2:A), A2:A}), 2, 1),
{UNIQUE(FILTER(A2:A, A2:A<>"")), SEQUENCE(COUNTUNIQUE(A2:A))}, 2, 0))

or if the set is not sorted:
=ARRAYFORMULA(VLOOKUP(VLOOKUP(ROW(A2:A), IF(A2:A<>"",
{ROW(A2:A), A2:A&COUNTIFS(A2:A, A2:A, ROW(A2:A), "<="&ROW(A2:A))}), 2, 1),
{UNIQUE(FILTER(A2:A&COUNTIFS(A2:A, A2:A, ROW(A2:A), "<="&ROW(A2:A)),
A2:A<>"")), SEQUENCE(COUNTA(A2:A))}, 2, 0))

also, keep in mind that a truly empty cell is not equal to a cell with the formula that outputs an empty string =""
