Having the incucator at 5% CO2 mimics the conditions in the body necessary for cellular growth. It also is the optimal humidity that will help eliminate evaporation during culture.
To be more specific, the CO2 content in the air is unstable, sometimes it goes up and sometimes it goes down, that way the pH will become unstable. So around 5% CO2 is necessary to stabilize the pH.
As for the saturating the humidity has been answered previously. Basically, both of them are necessary to keep the medium condition stable.