I'm learning 8051, and find it's hard to understand byte addressable and bit addressable.
They are not really using the terms right, byte addressable is what we are used to an address represents a unique byte in memory or the memory space. Bit addressable would mean that each bit in the memory space has a unique address, which is not the case. they are just showing you how to make some macros/variables that can access individual bits, is not an 8051 thing, but a generic programming thing and specifically implemented in C using variable types or keywords (or just macros) for their compiler.
What they are telling you is they have this sbit declaration which unless it is just a macro is clearly not a C standard declaration. But you can do the same things without. it is just bit manipulation that they are doing for you. Normally to set bit 5 you would do something like
variable |= (1<<5);
to clear bit 5
variable&=~(1<<5);
and you can certainly make macros from that to make it more generic. What they have done for this compiler is allow you to declare a variable that is a single bit in some other variable and then that bit sized variable you can set to a one or zero.