So the question is proving that: $U:=\{(x,y)\in\mathbb{R}^2 : xy\ne0\}$ is an open subset.
My method for doing so is define an open disk where its centre is contained within U, and then prove that the disk is also contained within U. Hence proving that it is an open subset? I am having trouble specifically with formulating these ideas into formal mathematic notation for the proof.
Any help would be greatly appreciated!
Your idea is on the right track. Start with a point $(x,y)$ in $U$ and show that if $(x',y')$ is sufficiently close to $(x,y)$, then $(x',y')\in U$, i.e. $x'y' \ne 0$.
If $xy\ne 0$, then $x \ne 0$ and $y\ne 0$. Hence if $0 < r < \min\{|x|,|y|\}$, and $(x',y')\in B_r\big(\,(x,y)\,\big)$, show that $x'y' \ne 0$.