Although it’s not absolutely certain, one dominant hypothesis is that it improves their flight mechanics.
According to the theory, short legs evolved because the reduced leg mass reduces friction, which in turn allows more and longer flights. Flying creates an aerodynamic force that provides most of the owl’s thrust – like how a wing is shaped to create air currents across its surface – with minimum use of muscle power. And so every ounce counts for these birds. Take away a few ounces and you’ll conserve energy for flying while you’re on the hunt for prey or… looking over your shoulder from atop a tree branch as I imagine all owls do pretty frequently.