I'm reading an article of Aaron Mazel-Gee about Fibered categories in grupoids and there is an example which I don't understand. Here the full article: https://etale.site/writing/stax-seminar-talk.pdf
...and the excerpt containing the example:
The category $\mathcal{C}$ is fixed and we consider a pair $(X_0,X_1)$. So this means for me that $X_i \in \mathcal{C}$ (eg they are objects in $\mathcal{C}$).
On the other hand we consider $U \in \mathcal{C}$.
From this context I don't see what is here $X_0(U)$ and $X_1(U)$?

From Section 4.3.1:
So essentially $X_0$ and $X_1$ are just functors and $X_0(U)$ is a groupoid.
c.f. page 3 of your source
Edit:
So, rather than specifically using the functor $Spec$ (yielding a contravariant equivalence between the categories CRing and AffSch), the author generalized this to a pair of objects $(X_0,X_1)$ in an arbitrary category $C$ that have the structure maps mentioned above. i.e., yes, $X_0$ and $X_1$ are called objects since $X_0,X_1 \in ob(C)$.
c.f. page 4