The term d_u f(x,y) represents the directional derivative of a function f at a point (x,y) in the direction of the unit vector u. This concept helps in understanding how a function changes as you move in a specific direction, providing valuable insights into the behavior of multivariable functions. By analyzing the directional derivative, we can assess the rate of change and the steepness of a function along different paths, which is essential for optimization and understanding surfaces.