GNU ls -U means unsorted output, so it does not need to wait for all the directory contents to start printing them.
head will close stdin and quit after a small number of lines. When the writer to the pipe, ls in this case, has no more readers, it will quit. This will flush all the I/O involved after only a small number of lines, making it seem snappy in interactive use.
Further reading: Process not closing when stdin is closed
A noticeable to humans delay in listing directory contents is a sign of exceeding practical limits. Lots of files in a directory means large file system metadata, and so a lot of I/O. Lots typically means hundreds of thousands of files, even for production tested file systems.
Beyond a certain number of files, it makes sense to reconsider alterative directory layouts and databases. Short term, put the problem volume on fast SSDs to make its performance tolerable.