array.each_with_object({}) { |s,h| h.update([s.split(/\s*=\s*/)].to_h) }
#=> {"Name"=>"abc", "Id"=>"123", "Interest"=>"Rock Climbing"}
For Ruby versions prior to 2.0 (when Array#to_h was introduced) replace [s.split(/\s*=\s*/)].h with Hash[[s.split(/\s*=\s*/)]].
The steps:
enum = array.each_with_object({})
#=> #<Enumerator: ["Name = abc", "Id = 123",
# "Interest = Rock Climbing"]:each_with_object({})>
We can see the elements of this enumerator by converting it to an array:
enum.to_a
#=> [["Name = abc", {}], ["Id = 123", {}], ["Interest = Rock Climbing", {}]]
The first element of enum is passed to the block, the block variables are assigned:
s,h = enum.next
#=> ["Name = abc", {}]
s #=> "Name = abc"
h #=> {}
and the block calculation is performed:
h.update([s.split(/\s*=\s*/)].to_h)
#=> h.update([["Name", "abc"]].to_h)
# {}.update({"Name"=>"abc"})
# {"Name"=>"abc"}
which is the updated value of h.
The next element of enum passed to the block is:
s,h = enum.next
#=> ["Id = 123", {"Name"=>"abc"}]
s #=> "Id = 123"
h #=> {"Name"=>"abc"}
h.update([s.split(/\s*=\s*/)].to_h)
#=> {"Name"=>"abc", "Id"=>"123"}
and so on.