RIght, LY is light years, and y is years, and he has taken your estimate of one year (Newtonian) to accelerate to c as denoting an accleration rate c per year. Since c is one light year per year, that comes out 1 light year per year per year, a good L/T^2 unit for acceleration, which he abbreviates 1 LY/Y^2.
Proper time is the time measured on the ship, which is "Newtonian".
Rapidity is a technical term in relativity. As he says, it is the quantity of which the speed is the hyperbolic tangent. The Lorentz transformations are analogous to rotations, but where the rotation matrices have sines and cosines, the Lorentz matrices have hyperbolic sines and cosines, and this trick with rapidity sets you up to use that mathematical formalism. The hyperbolic functions are then functions of the rapidity, which is denoted by theta to indicate its analogy to a rotation angle.
So once he has the rapidity and proper time, he can do regular acceleration math. The results are then governed by the behavior of the hyperbolic tangent, which we have to use to get back from rapidity to speed.