Well, what exactly is your question? Yes, the notation P(x,y) means that P is a function of the two variables x and y. You, for some reason, write that twice. Did you mean Q(x, y) for the second? It also means that Q is a function of the two variables x and y.
In Green's theorem, in the form
[tex]\oint P(x,y)dx+ Q(x,y)dy= \int\int\left(\frac{\partial Q}{\partial x}- \frac{\partial P}{\partial y}\right)dxdy[/tex]
P and Q are simply two functions of x and y. They can be pretty much any functions as long as they satisfy the hypotheses: they must have continuous partial derivatives inside and on the closed curve.
You can think of P and Q as the x and y components of a vector valued function, as algebrat suggests. Taking the z-component to be 0, the integrand on the right can be thought of as the "curl",
[tex]\nabla\times \vec{F}(x,y)= \left(\frac{\partial Q}{\partial x}- \frac{\partial P}{\partial y}\right)\vec{k}[/tex]
where [itex]\vec{F}(x,y)[/itex] is the vector valued function [itex]\vec{F}(x,y)= P(x,y)\vec{i}+ Q(x,y)\vec{j}[/itex].
In vector form, Green's theorem can written
[tex]\oint \vec{F}\cdot d\vec{\sigma}= \int\int \nabla\times \vec{F}\cdot d\vec{S}[/tex]
a special form of the "generalized Stoke's theorem".