Is there a difference between the following two set related notations:
$$\{~\dots~:~\dots~\}~\text{vs.}~\{~\dots~|~\dots~\}?$$
I take it they both mean "such that" but I was wondering why some authors prefer one to the other, maybe there is a historical background to it?
it's exactly the same. But if you need a "such that " twice, it's better to use $\mid$ and then $:$. For example, $$\{y\mid \exists x\in \mathbb R: y=f(x)\}$$