Your textbook expects you to try things in the interactive interpreter, which shows you values as you enter them. Here's an example of how this looks:
$ python
Python 2.7.5+ (default, Sep 17 2013, 17:31:54)
[GCC 4.8.1] on linux2
Type "help", "copyright", "credits" or "license" for more information.
>>> def sqrt(n):
... approx = n/2.0
... better = (approx + n/approx)/2.0
... while better != approx:
... approx = better
... better = (approx + n/approx)/2.0
... return approx
...
>>> sqrt(25)
5.0
>>>
The key thing here is the difference between expressions and statements. def is a statement, and produces no result. sqrt, which the def block defines, is a function; and functions always produce a return value, such that they can be used in expressions, like sqrt(25). If your function doesn't contain return or yield this value is None, which the interpreter ignores, but in this case sqrt returned a number which is automatically printed (and stored in a variable called _). In a script, you might replace the last line with print sqrt(25) to get the output to a terminal, but the useful thing about return values is that you can do further processing, such as root=sqrt(25) or print sqrt(25)-5.
If we were to run the exact same lines as a script, instead of in interactive mode, there is no implicit printing. The line sqrt(25) is accepted as a statement of an expression, which means it's calculated - but then the value is simply discarded. It doesn't even go into _ (which is the equivalent of the calculator's Ans button). Normally we use this for functions that cause side effects, like quit(), which causes Python to exit.
By the way, print is a statement in Python 2 but a function in Python 3. That's why more and more uses of it have parenthesis.
Here is a script which relies on sqrt (in this case Python's own version) returning a value:
from math import sqrt
area = float(raw_input("Enter a number: "))
shortside = sqrt(area)
print "Two squares with the area", area, "square meters,",
print "placed side to side, form a rectangle", 2*shortside, "meters long",
print "and", shortside, "meters wide"