Dr. Seafood said:
^ "y" is the name of the function, "y(x)" is the particular function value when we evaluate the function at x. If you choose to call the function "f", that's fine too. I think tiny-tim's post was pretty misleading, but he made a valid point -- nowhere in your opening post did you say that (the number) y was related to (the number) x by a function named "f". Sure, it's pretty clear that there's function relationship between y and x, i.e. when x changes, y changes; but you didn't specify that this was indeed denoted by the name "f". You could have called the function "DONUT_LOL", and then we would have "DONUT_LOL(x) = x2 + 1". For the purposes of your OP post, the name "y(x)" is pretty obvious because you have already said that y is related to x -- thus it's pretty self-explained to write "y" as the name of the function instead of just as the symbol representing a number related to x. It's not really addressing your question, but it's just for a bit of specificity here. Honestly though, it wasn't that misleading, but of course we mathematicians like to be precise, so make sure you clearly explain every claim you make and notation you use.
Now this segues pretty well into answering your OP question ... I always find difficulties explaining function notation to people who are new to it or don't quite understand it.
We can pretty explicitly define a function relationship between real numbers x and y by saying that y = x2 + 1. It's very obvious that y takes on different values when x is a different number. So in this interpretation, x is a (potentially) changing number, and y changes according to "one greater than the square of x", as the equation specifies. We could say "y is a function of x" and write y = y(x), or perhaps decide to name the function "f" and write y = f(x) = x2 + 1. Note that here we are interpreting this as a denotation that y changes when x changes. Here, that is why we choose to write "f(x)" or "y(x)" instead of simply "y". We want to make explicit that y is a function of x.
Suppose we name your example function "f". Then we get f(x) = x2 + 1. Now choose a fixed number denoted by y, and suppose f(x) = y. Now we have y = f(x) = x2 + 1. This asks me to find number(s) x such that f(x) = y. I can pick y as as I like -- if I want f(x) = 5, this asks for all x such that 5 = x2 + 1. I get that |x| = 2 (two distinct numbers). Unlike in the last interpretation, y was fixed and we were asked to find x's, which turn out to be fixed when y is fixed. Here, we're not trying to say that y is a function of x -- we're trying to show that y is a number that is unchanging, and that we can find values in the domain that correspond to this number under the image of the function "f".
A third interpretation is similar to the first: if I want to have the notion that y is a function of x, but we don't know in which way, we can write "y = f(x)". This shows that function's name is indeed "f". The point of using such notation is that we can use the name "f" in following presentations without ambiguity or confusion -- suppose we want to discuss the derivative of f: we lose no precision in writing f'(x) to denote that. Also, we don't know quite what f does to the number x in order to yield the number y ... In this sense, "f" is not "fixed", and we can consider "f" as being any function without loss of ambiguity. Alternatively, we might want to consider f as fixed in order to discuss things that can be done with f -- differentiating, discussing its continuity, domain, etc. In the previous example, we say that the function f takes a real number, squares it, and adds one to it. This is denoted by y = x2 + 1. Observe that we have abandoned the name "f"! We don't need it here; again for example, if we want to talk about the derivative, we can simply write \frac{dy}{dx} = 2x. Here, we know what f does to x, so we can just abbreviate this by forgetting the "f(x)" notation and writing "y = x2 + 1".
These three separate interpretations, and probably more I have accidentally left out, are key to understanding the use of function notation. Always try to use notation wisely to minimize ambiguity and maximize precision.