f(x, y, z) is a function that gives a value for each point in space, rather than each point in a plane. The example that HallsOfIvy gave, is the function that assigns to every point in the room the air temperature at that point.
The problem with functions of three and more variables is that we cannot draw them because we don't have enough dimensions. A function f(x) of one variable, can be drawn in two dimensions (set up an x-axis, and for each point x draw the corresponding value f(x) directly above it on the y-axis). Functions of two variables can still be drawn: above each point in the plane, draw the function value on the z-axis, like https://www.physicsforums.com/latex_images/96/968788-0.png . But to draw a function of three variables, you would have to have four perpendicular axes. Unfortunately we only live in a three-dimensional space, so it's very hard imagining this (and impossible doing it intuitively, let along projecting it on a two-dimensional piece of paper). Best thing you can do is try to think of the temperature analogy. You can then extend this also to a function of four variables, f(x, y, z, t) which would give the air temperature in the room at a given point (x, y, z) and a time t.
Another way to look at it: consider a function like a slot machine. It has some number of input slots, which we label by arbitrary letters (x, y, z, ...) -- if you put numerical values on these slots the function machine spits out a value. For example, the function f(x) = x^2 has one input slot x: if I insert x = 3 it spits out 9 and if I put in x = 1/2 it spits out 1/4. The advantage of a function of one (two) variables is that it can be graphed, by putting all possible input values on the x-axis (x and y axes) and the corresponding output on the y (z) axis, which gives you an insight in how the number is produced (e.g. if I slightly increase x, what will happen to f(x)), an advantage you don't have in more dimensions (though, in more advanced mathematics there are ways to describe the behavior of arbitrary functions which are almost as good as drawing graphs).