Wooding is essentially the obstruction of a radar field of view by "stuff". Usually used in connection with ships, but also applicable to aircraft if you're trying to mount a 360 degree FoV radar, in proximity to an airframe.
Think how high above the wings and fuselage the radome is on an E3. You can't get that on an E2 (hangar height) but you try to make it as high as you can. The E2 radome lowers slightly once aboard for stowage. IIRC the original reason was to allow stowage in the old CV-41 hangar (lower deckhead height than CV59 onwards).