Also, if you think about what happens if the leo doesn't shed it makes some sense. Each scale the leo has is essentially a hardened flap of skin. If the skin on the scale becomes tight, the blood circulation to the scale is cut and you get necrosis.
Also if you look at the mechanics of reptile skin, it's extremely different from human skin. Human skin is pretty porous in comparison, it absorbs water and oil and dries out pretty easily too. Reptile skin on the other hand is non-porous and is made to hold all the moisture of the animal inside to prevent dessication (harsh climate adaptation). This makes the skin on a microscopic scale almost like a plastic; hard, plate-like, and not easy to stretch. So in order to grow, the reptile has to find someway to deal with its skin.
A good way to get an idea of the differences between our skin and reptile skin is to look at leather products. Leather gloves stretch and form to your hands after some use, snake/croc leather doesn't ever stretch.
-Lemur 6