I have a rather elementary question about multivariable calculus.
In a function $f(x,y)$; are the two values for the variables arbitrary chosen from a given set of numbers or are there any relationships or restrictions beyond that?
What I mean as an example: $f(x,y)=x^2+y$, where $x$ and $y$ are elements of all real numbers. Is there any further restriction to this or any combination rule for $x$ and $y$ that is just given in such a function ?
No. $x$ and $y$ can be arbitrary real numbers, as long as the expression makes sense. Sometimes the domain may be smaller - just as in the one variable case. The domain for $f(x) = \sqrt{x}$ isn't the whole real line. The domain for $f(x,y) = \sqrt{x^2 + y}$ isn't the whole plane.