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The desiccation or dehydration of the disc material is known as disc desiccation. Between each vertebrae of the spinal column are discs that have gelatinous material. This water-like substance acts as a cushion and a shock absorber. Desiccation of disc material is most common in elderly people and can happen anywhere in the spinal column from the top to the bottom.
Your MRI report describes the common degenerative changes. Desiccation happens due to loss of hydration in the disc which in turn loses it's elasticity causing the disc collapse. Later it bulges out which can cause foraminal narrowing. If it presses on spinal cord or the nerve root arising from spinal cord, it causes radicular pain in particular area supplied by that nerve.