I know there are uncountable number of equivalence classes defined by the relation defined here: Equivalence classes of "$x \sim y \Longleftrightarrow x -y $ is rational". (the relation is defined on the set $[0,1)$)
Each of those equivalence class contains countable number of elements.
This textbook says we need the Axiom of Choice to pick one element from each equivalence class. Why? Is it because we always need the Axiom of Choice when picking an element from an uncountable number of sets?
No, it’s because there is no way simultaneously to specify a particular element of each class. If I let $X=\Bbb R\times\Bbb R$, and for each $r\in\Bbb R$ let $A_r=\{r\}\times\Bbb R$, I can easily pick one element from each $A_r$, even though each $A_r$ is uncountable: for instance, from $A_r$ I can choose the element $\langle r,0\rangle$. I have a recipe for specifying one particular element. I have many such recipes, in fact: I could just as well pick $\langle r,r\rangle$ as the representative of $A_r$.
In the other direction, there are models of set theory that show that one might need the axiom of choice to pick a representative from each member of a family of two-element sets. In short, the cardinality of the individual sets is not the issue.