The derivative definition is usually presented using upper-case delta, \Delta rather than lower-case delta, \delta as you have.
It might be helpful to use function notation, letting f(x) = y = x2 - x. The derivative of f at 1 can be written this way:
\lim_{\Delta x \to 0} \frac{f(1 + \Delta x) - f(1)}{\Delta x}
The fraction gives the slope of a secant line between (1, f(1)) and (1 + \Delta x, f(1 + \Delta x)). The numerator gives the vertical change (rise) and the denominator gives the horizontal change (run). As \Delta x approaches zero, the slope of the secant line approaches the slope of the tangent line.
Substitute for f(1) and f(1 + \Delta x) in the limit formula above, simplify, and then take the limit.
If you still don't understand, your text should have an explanation of this and some examples.