The first edition of Principia Mathematica clearly distinguishes "Socrates is a man" and "'Socrates is a man' is true." Judging from the context, the distinction is neither a primitive idea nor a definition; it is something the reader is supposed to "see." For some reason I can't "see" it, although I can deliberately memorize the distinction the same way I memorize multiplication table. I have an inkling that this distinction should directly appeal to the sense, like the distinction between red and blue. If you can "see" this distinction, please kindly help me out.
The following passage is from page 41, Introduction, Chapter II, section II, The Nature of Propositional Functions.
https://i.stack.imgur.com/ejGD1.png
These symbols are for your convenience:
propositional function: $\phi(\hat{z})$
Ambiguous value: $ \phi(z) $
A function with itself as an argument: $\phi(\phi(\hat{z}))$
A possible interpretation of the passage must take into account the context, that is : Chapter II : THE THEORY OF LOGICAL TYPES.
In particular, the passage is taken from section II. The Nature of Propositional Functions.
We must remember the lack of clear and systematic distinction in W&R's Principia between object-language and meta-language (and meta-theory); in this chapter, they are explaining the "syntactical" restrictions involved in type theory.
See page 40 :
Roughly, the formula $\phi(\phi)$ is not true nor false; it is simply meaningless, because it violates what we today will call the "rules of formation"; see page 41 :
Gregory Landini, in Russell's Hidden Substitutional Theory (1998), page 279, proposes a reading that starts from Frege's hierarchy of "levels" of functions. According to Landini :