I notice the variable name that I created for the subroutine trigger, Account name, is the label of the parameter field in the caller.
When the subroutine macro executes, the text it types is the literal %Variable%Local Account name% where I of course want it to type brec Savings Account. How should I be doing this?
Everything looks right -- but there are things that don't show in images, which is why it's best to post example macros as well. See How to Post/Upload Your Macro to the Forum for how.
Meanwhile, check the Options menu (the cogwheel) of your sub's "Insert text" action to make sure you haven't inadvertently turned off token processing -- you want "Process Text Normally" to be ticked.