Hey Kathy, I checked the Lion Brand website and looked at both of the crochet patterns they have called Urban Wrap. The one you give the instructions for is the Easy Skill Level pattern which is pictured in sort of a grey color. Is that correct?
After reading the directions through, it seems that the 'steps' you are referring to that are formed by the unworked stitches form the shaping from the shoulders to where the two front halves come together at the breast. They will be sort of smoothed out when you crochet around the piece following the finishing instructions.
This looks like a very cozy wrap. I might have to whip me up one of them!
I hope my explanation helps to clarify the instructions.
Please holler if you need any more help!