The figure below, taken from the scientific literature1, shows three variables: dose, drug type and survival. Although your screen/book page is flat and two-dimensional, the plot tries to imitate three dimensions and assigned a dimension to each variable.
(Image courtesy of Karl Broman)
Humans are not good at seeing in three dimensions (which explains why it is hard to parallel park) and our limitation is even worse with regard to pseudo-three-dimensions. To see this, try to determine the values of the survival variable in the plot above. Can you tell when the purple ribbon intersects the red one? This is an example in which we can easily use color to represent the categorical variable instead of using a pseudo-3D:
Notice how much easier it is to determine the survival values.
Pseudo-3D is sometimes used completely gratuitously: plots are made to look 3D even when the 3rd dimension does not represent a quantity. This only adds confusion and makes it harder to relay your message. Here are two examples:
(Images courtesy of Karl Broman)