As others have noted, this passage is not about equality. But neither is it about freedom—at least not as commonly understood. Characteristically, Nietzsche is playing with the word, and he is doing so to make a point about independence and self-sufficiency
Nietzsche opens the section from which this passage is taken by noting that what something gets us isn’t the only way to evaluate it. We can also evaluate things in terms of what they cost us. Politically liberal societies (which at the time meant democracies) win us a variety of political freedoms. But society itself—democratic or otherwise—costs us a different kind of freedom.
By its very nature, society is a herding behavior. It gathers us together and encourages us to specialize and divide labor. But in doing so, we become more and more dependent on one another. All of the non-farmers have to rely on the farmer for food. All of the non-doctors have to rely on the doctor for medicine, etc. We are not self-sufficient, and thus we are not truly independent.
Insofar as we are not independent, we lack a certain kind of freedom: the freedom to just walk away. A lot of ink has been spilled over Lockean political theory and the right to withdraw from the social contract, but Nietzsche’s point is that it’s all irrelevant if walking away from society is not actually a live option. For all your political freedoms, you are nevertheless bound to society for life.
Now, this might be all well and good. Perhaps it doesn’t bother you at all to be bound to society for life. Still, Nietzsche would say, it is worth pointing out this fact. Why? Because it is so often obscured in liberal societies by all the talk about and adulation for political freedom. Under an authoritarian government—which, for the record, Nietzsche opposed—we have no illusions about our freedom. We know that we are not, in any sense, free. But under a liberal society, we can forget that society itself comes with costs.
Nietzsche’s interest in this is twofold. For one, he’s just a devotee of truth and generally opposed to living under an illusion. If you’re going to give up self-sufficiency for society, he’d say, at least don’t lie to yourself about what you’re doing. After all, forgetting the trade-offs of a decision will make it impossible for you determine whether or not continuing on your chosen path is still worthwhile.
For another, Nietzsche was a big fan of the ancient Greek philosopher Diogenes, who spurned society and praised self-sufficiency. Nietzsche takes Diogenes as a model for a higher ideal, one that turns its back on city life and laughs at the absurdity in how often social norms are treated as if they were laws of nature rather than artificial constructs. (Diogenes would also laugh at the Stoics, who seemed to think that a life according to nature would be calm and relaxed rather than rough and laborious.)
Such a person would be politically free (insofar as they considered themselves outside the restraints of any government), but also independent and self-sufficient. Thus, in Nietzsche’s view, they would be truly and thoroughly free. It is up to us whether we value this level of freedom, or whether the costs of society are worthwhile. But Nietzsche wants us to be aware of the option—and, of course, he thinks that selecting it is well worth the rewards for those who can manage.