The schema of separation states (this is probably simplified) states that if $P$ is a property and $X$ is a set, then there exists a set $Y = \{ x \in X : P(x)\}$.
The notes I'm reading say that from this we can conclude that the set of all sets doesn't exist, by applying the schema of separation to the property $x \notin x$.
I'm not seeing how applying the schema of separation to that property shows it. Can someone clarify this?
Let $V$ be the collection of all sets, and assume that $V$ was a set, let $W=\{x\in V\mid x\notin x\}$, then by the separation schema $W$ is a set.
Now ask yourself, $W\in W$ or $W\notin W$?
Therefore $W$ cannot be a set, but this can only mean that $V$ cannot be a set to begin with.
This is also known as Russell's paradox.