You can define the Farey sequence of order $n$ as the sequnce of fractions occurring in-order traversal of the Stern-Brocot tree, while not descending into branches whose denominator exceeds $n$. Here one only encounters completely reduced fractions, so that is in order. The descendants of a node in the tree are obtained by adding to its numerator and denominator those of its first ancestor in the tree that is on the proper side of it (taking $\frac01$ and $\infty=\frac10$ as ultimate ancestors to ensure there is always one on either side).
If a fraction between $0$ and $1$ has denominator $n+1$ then its parent in the Stern-Brocot tree has a smaller denominator, and the first ancestor of the parent in the proper direction was next to in in the in-order traversal up to level $n$, which explains why you always get $\frac{a+c}{b+d}$ between $\frac ab$ and $\frac cd$. The relation $bc-ad=1$ holds whenever either $\frac ab$ is the first ancestor of $\frac cd$ less than it or $\frac cd$ is the first ancestor of $\frac ab$ greater than it; this follows by induction from the construction, and proves that all fractions are reduced.