Meaning of "second-order": quantification over subsets vs propositions

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Using the type of natural numbers $\mathrm{N}$ and the type of propositions $\mathrm{Prop}$, we can make Peano arithmetic in the style of type theory.

https://ncatlab.org/nlab/show/Peano+arithmetic

Since Peano arithmetic is a first-order theory, the range of quantification is limited to $\mathrm{N}$.

If I allow quantification over $\mathrm{Prop}$, is it second-order?

"Second-order" is described as allowing quantification over subsets. However, subsets and propositions are conceptually distinct.

Besides, if this is second-order, I do not know how to make it third-order.