'Stand' did not always mean a place to sit. For half a millennium, a soldier's 'stand' was the place he 'stood' to carry out sentry-duty and a huntsman's 'stand' was where he 'stood' ready to shoot game. In other words, it was simply a 'watching-place'.
The earliest recorded use of the word - in the 1600s - in a purely sporting sense was where spectators 'stood' to watch Doncaster races. Sitting in 'stands' is relatively recent.