What's a better definition for (an interpretation of) a predicate in general (i.e. non-theory-specifically):
(1) a proposition-valued function.
(2) a proposition-valued function w/ a nonempty domain.
This suggests (2), while that suggests (1). (1) seems to imply the principle of propositions-as-predicates, which makes sense if we view predicate logic as a generalization of propositional logic. (You may suggest better definitions if you have one)
For the changed question, about the interpretation of predicate symbols instead of about predicates, in general it is a function from the domain to the collection of truth values. The domain need not be non-empty (that is peculiar to the conventional definition of first-order logic but not always assumed so), and the truth-values may not be two (such as in 3-valued logic).
Note that this definition is implementation-agnostic; you could have defined the truth values to be $0,1$ for $\bot,\top$ respectively, in which case predicates would be the same as indicator functions on the domain. Or you could have done otherwise; the definition will just follow along.