to lay out in good order: to set things in their proper places, piece by piece
The basic picture is a person placing things deliberately, one by one, into the arrangement they are meant to have. It is hands-on, orderly work, not a vague tidying. You see it in priests laying split wood across an altar, in setting a row of bread or a row of lamps in the holy place, and in spreading a table for guests.
From that physical core the word stretches naturally to anything that is set out in deliberate order. An army is "laid out" when its ranks are drawn up facing the enemy, so the word becomes the standard term for forming a battle line. Words are "laid out" when a speaker marshals an argument or a legal case point by point. And two things are "set side by side" when they are measured against each other, which gives the word its sense of comparing, and (almost always in the negative) of being a match for someone.
The thread running through all of these is arrangement toward a purpose: items placed in a fixed order so they are ready for use, for worship, for battle, or for judgment. The shade of meaning shifts with what is being arranged, but the action is the same deliberate setting-in-order.