Octal just maps onto 3 bits instead of hex's 4. I always imagined it had something to do with the size of the byte not being standardized yet.
There were 8 address modes for each register.
So a src/dst instruction used up 12 bits for the src/dst+modes, a single register instruction used 6 bits.
You could load the registers directly at addresses 177770 through 177777 on the front panel. So if your program was 5 words long, you could load that into registers R0-R4, then load R7 with the address 177770 and execute.