As Verdan mentioned, when deleting in smaller batches, the transaction log 'may' be re-used, which will reduce the overall growth of the transaction log file. In addition, if you need to rollback/abort the process (such as the delete operation is blocking another critical process and you want to wait for some time before continuing the delete operation), smaller batches are more desirable than one large batch.
Please note that the amount of data logged into the transaction log differs based on the database recovery model. Using bulk logged recovery model (if the environment permits) may significantly reduce the amount of data written to the transaction log.
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