This means that the called subprogram (text-name) is passed a text string which includes the entire COBOL statement beginning with the EXEC(UTE) verb and ending with the END-EXEC phrase. The called program must parse and then process all of the included information.
If an identifier-name is included in text-data, then it is the name of the identifier, not the value of the data in the identifier, that is passed to the subprogram.