To expand on the other reply, there are a couple more implicit loops. There's a loop over all of the command line arguments/files, then a loop for every line in each of those files, then there is kind of a loop over the whitespace delimited fields of each of those lines. The main thing that helped me understand AWK was that every block in a script is just a pattern/action pair. When I saw snippets like
... | awk '{print $2}'
I thought there was all this confusing syntax, but something like
awk '/pattern/ {print}'
was more clear to me. In the first case, the empty pattern matches every line of the input, and the action is simply to print the second field of each line. Patterns can vary in complexity from the empty pattern to long chains of logical operators and regular expressions, such as /pattern/ in the second example. The outer quotes are just to prevent the shell from eating your dollar signs or other special characters. In a standalone AWK script you can write it like
/pattern/ {
print
}
which also makes it look more like another language.
If you can get your hands on a copy of The AWK Programming Language, it's a pretty quick and pleasant read that helped everything make more sense to me. I do most of my data analysis for my research using AWK and really enjoy working with it.