Coordinate time is different from proper time. Let's say we are in the rest frame of an observer ##O## whose worldline passes through two events ##A## and ##B##. Furthermore let's say ##O## has set up his frame with coordinates ##(t,x,y,z)##. In the rest frame of ##O## he measures no spatial displacement when he goes from ##A## to ##B## of course so ##\Delta \tau_{AB} = \Delta t_{AB}## so the time measured on a clock held by ##O##, the proper time, is just the coordinate time in the coordinates set up by ##O##.
Let's say now we have another observer ##O'## who is moving with velocity ##v## in the ##x## direction relative to ##O## and say ##O'## has set up in his frame coordinates ##(t',x',y',z')## (assume they have synchronized their clocks etc.). According to a clock held by ##O'## the proper time for ##O## to go from ##A## to ##B## will be ##\Delta \tau'_{AB} = \sqrt{\Delta t_{AB}'^{2} - \Delta x_{AB}'^2}##.
We know how the coordinates ##(t,x,y,z)## of ##O## will related to the coordinates ##(t',x',y',z')## of ##O'## through the lorentz transformations ##t' = \gamma (t - vx), x' = \gamma (x - vt)##. We see that ##\Delta t_{AB}'^{2} = \gamma^{2} \Delta t_{AB}^{2}, \Delta x_{AB}' = \gamma ^{2}v^2\Delta t_{AB}^{2}## so ##\Delta \tau'_{AB} = \sqrt{\gamma ^{2}\Delta t_{AB}^{2}(1 - v^2)} = \sqrt{\gamma ^{2}\Delta t_{AB}^{2}\gamma ^{-2}} = \Delta t_{AB} = \Delta \tau_{AB}##. Indeed, both ##O## and ##O'##'s clocks measure the same proper time between events ##A## and ##B## even though ##O## has set up different coordinates in his frame from those of ##O'##. Proper time is a frame invariant quantity in this sense whereas the coordinate times ##t## and ##t'## are not.