Error Message: The SELECT item identified by the ORDER BY number 1 contains a variable as part of the expression identifying a column position...

This SQL Server full error message is: "The SELECT item identified by the ORDER BY number 1 contains a variable as part of the expression identifying a column position. Variables are only allowed when ordering by an expression referencing a column name."

It happens when a bind variable is placed in ORDER BY clause. For dynamic SQL, the solution is Database Engine Stored Procedures sp_executesql. For example:

Your failed original statement:
SET @stddev = SELECT STDEVP(@EachColumn)
FROM Temp_IQM_Input
ORDER BY @EachColumn

The solution:
DECLARE @stddevString NVARCHAR(1000)
SET @stddevString = ' SELECT @out = STDEVP(@para) '
+ ' FROM Temp_IQM_Input '
+ ' ORDER BY @para '
DECLARE @stddev INT
EXECUTE sp_executesql @stddevString
, N'@para VARCHAR(32), @out INT OUTPUT'
, @para = @EachColumn
, @out = @stddev OUTPUT
;

For sp_executesql statement, the 1st line is the sql query in string, 2nd line to define the bind variables, if the parameter used for output, it needs to be stated. The rest lines are for variables assignments.

It is painful because there are too many WIP parameters; but it is the way.