The reason for the quoting is so that the query will look like this to the database sql engine:
insert into books values ('1234', 'john doe', 'my life', '$1.23')
You database needs to know if the value it's trying to insert is a number or a string, the single quotes tell it that it is a string.
Also whoever wrote this code was making sure that his variables stood out in the line, he was probably using a syntax highlighting development environment, and by placing the variables outside of the double quotes they will show up in a different color and therefore be easier to spot.
Here is an example:
$query = "insert into books values
('".$isbn."', '".$author."', '".$title."', '".$price."')";
$query = "insert into books values ('$isbn', '$author', '$title', '$price')";
Which one is it easier to tell the variables in?