My question is what does it mean
applying a Taylor series with respect to something and around a point.
What is the difference?
Please explain it with the following example:
Apply a Taylor series expansion to $r'$ with respect to $a/r$ around $0$. Only until the squared terms (inclusive).
Where $$r'^2 = a^2 + r^2 +2ar\sin(\theta)\cos(\alpha-\phi)$$
For an easier example, let $f(x) = \sin(x)$. The Taylor series expansion of (or, I guess, in your above language 'to') $f$ with respect to $x$ around $0$ is the familar $$ f(x) = x - \frac{x^3}{3!} + \frac{x^5}{5!} - \frac{x^7}{7!} + \dots$$
So you want to rewrite $r'$ in terms of $a/r$ and expand around 0.