As OP has acknowledged in a comment, the tricky part is Step 4, so we ask
Why is $\overline{BD}$ the desired circumradius?
We can answer this, somewhat unsatisfactorily, using the Law of Cosines on $\triangle ABD$. First, we'll note that the construction gives us these values for an assumed "given" length of $10s$ (to avoid some fractions):
$$|\overline{AB}| = 10s \qquad |\overline{AD}| = 5s\left(1+\sqrt{5}\right) \qquad \cos A = \frac{|\overline{AB}|}{|\overline{AC}|}=\frac{2s}{s\sqrt{5}}=\frac{2}{5}\sqrt{5}$$
So, by the Law of Cosines,
$$\begin{align}
|\overline{BD}|^2 &= (10s)^2 + \left(5s(1+\sqrt{5})\right)^2-2\cdot 10s\cdot 5s(1+\sqrt{5}) \cdot \frac{2}{5}\sqrt{5} \\[2pt]
&= 100s^2 + 25s^2 \left( 6 + 2 \sqrt{5} \right)- 40 s^2(\sqrt{5}+5) \\[6pt]
&= s^2 \left( 50 + 10 \sqrt{5} \right) \tag{1}
\end{align}$$
so that
$$|\overline{BD}| = s \sqrt{50 + 10\sqrt{5}} \tag{2}$$
which agrees with MathWorld's for the circumradius of a pentagon with side-length $10s$. $\square$
As I mentioned, this answer is unsatisfactory ... which may actually help assuage OP's self-doubts.
Sure, the calculation shows that the numbers work-out how they should, but it sheds no light on how anyone might have expected this result. (I didn't believe it worked until I did the trig verification (twice!), and I'm usually pretty good at perceiving stuff like this. It's what I do.)
More importantly, the calculation gives no indication about how anyone might naturally arrive at the given construction of a pentagon's circumradius. If I were tasked with constructing the length in $(2)$, that construction is not the route I would've taken first ... or even ever. (I probably would've done something far more complicated using the geometric mean construction.)
If, instead, I were asked to construct the pentagon with a given side, it would not have occurred to me to construct that complicated circumradius at all. Rather, I would have gone in the direction of @Seyed's construction, because I "know" the ratio of the diagonal to the side is the Golden Ratio, $(1+\sqrt{5})/2$, and I "know" how to construct a diagonal of the appropriate length. (That's the "obvious" stuff in Steps 1 through 3 of the construction in the question.)
In short: I find the construction in question quite non-intuitive. OP should not feel bad about not understanding the key relation. To be clear:
This IS NOT an indicator that you don't have a good future in math.
(This may be an indicator, though, that whoever devised that surprising construction does (did?) have a good future in math!)
On a side note, compass+straightedge construction is a well-studied theory. You need to start with the basic exercises first, if this is your first encounter.
– dezdichado Dec 28 '17 at 10:44