You are right that the description in SWH&C is a bit nebulous and potentially misleading. What the book attempts to do is to explain the meaning of $\sigma$ as it relates to the peak shape and peak area. The catch is that you can't report a single value of $\sigma$ as representative of the efficiency of a column, since it would not be constant under all circumstances. But you can report one value of H (for a given flow rate and solute/mobile phase) and this will be representative. Then if H and L are known the standard deviation of the Gaussian peak shape in distance units can be computed as $\sigma=\sqrt{LH}$.
One might wonder why $\sigma$ is not constant, or why plate height is not proportional to $\sigma/L$, as the textbook might appear to suggest, so I will explain why this is.
The reason is that one would like to have a property that depends on the composition of the column but not on its dimensions (or the elution time). If you double the length of a column, then a solute will take twice as long to elute (if the mobile phase flows at the same rate), but the width of the peak will increase $\propto\sigma \propto t^{1/2}\propto L^{1/2}$, meaning $\sigma/L\propto L^{-1/2}$, so $\sigma/L$ is not a property that is independent of the length of the column. On the other hand, since $\sigma^2 \propto t \propto L$, $\sigma^2/L$ is independent of L and of the elution time (provided the flow rate is constant).
Additional relations that allow you to draw these conclusions are $L\propto\mu t$ and $\sigma=\sqrt{2Dt}$, where $\mu$ is the mobility of the solute and D its diffusion coefficient. D is a constant property for a given solute and column phases, and $\mu$ is proportional to the flow rate and phases, but not dependent on column dimensions. Therefore $D/\mu$ is independent of column dimensions or of the elution time, and by extension so is $\sigma^2/L$.
Note this only covers the effect of diffusion of the solute in the mobile phase (the efficiency is also a function of the flow rate for other reasons).
For more information on how H is determined in practice you might want to look at a GE Healthcare application note (Ref 1) or the reference therein (Ref 2).
References
GE Healthcare Application note 28-9372-07 AA
Hagel, L. et al. Handbook of process chromatography 2nd ed., John Wiley and Sons, Inc., New York (2008).