Generally it means that by increasing the level of abstraction one can make the problem easier to understand/resolve.
Be careful with your abstractions though, the full quote at least as I heard it is, "You can solve every problem with another level of indirection, except for the problem of too many levels of indirection".
与恶龙缠斗过久,自身亦成为恶龙;凝视深渊过久,深渊将回以凝视…