As quasar987 said, there is no one method of parameterizing a curve. In fact, there exist an infinite number of different parameterizations for any curve.
For the example given, because the path (From the origin, (0, 0, 0) along the z-axis to (0, 0 1), then along the quarter circle to (0, 1, 0), then along the y-axis to (0, 0, 0) again) is not "smooth" (there are corners at (0,0,0), (0, 1, 0) and (0, 0, 1)), you would break it into three pieces.
First the line from (0, 0, 0) to (0, 0, 1). At any point on that line, x=y= 0
An obvious parameterization is to use z itself as parameter: x= 0, y= 0, z= t, with 0\le t\le 1.
Second, the quarter circle from (0, 0, 1) to (0, 1, 0). At every point on that circle x= 0 and y2+ z2= 1. A "standard" parameterization for a circle is to use sine and cosine: x= 0, y= sin(t), z= cos(t). Then x= 0 always while y2+ z2= sin2(t)+ cos2(t)= 1 for all t. Of course, it is z= cos(t) and not y because when t= 0, z= cos(0)= 1 and y= sin(0)= 0 as required. When t= \pi/2, z= cos(\pi/2)= 0 and y= sin(\pi/2)= 1 so 0\le t\le \pi/2.
Finally, the line from (0, 1, 0) to (0, 0, 0). Obviously x= z= 0 at every point. We could use y itself as parameter: x= 0, y= t, z= 0 with t going from 1 to 0. Another possibility is x= 0, y= 1- t, z= 0 with t going from 0 to 1.