By actual definition: Given a fixed point, the displacement of a particle from that fixed point is defined to be the shortest possible distance to reach that point, as well as the direction of the particle with respect to that point.
In the context of 2u maths, however.
Because the 2u course only demands you to know left and right, we define the displacement 'x' of a particle as how far it is to the left, or to the right of the particle. When x=0, we say that the particle is at the origin. When x>0, say x=1, we say the particle is 1m to the right of the origin. When x<0, say x=-3, we say the particle is 3m to the left of the origin. Note that our units for displacement is the metre.
Graphically, this means that at any point above the t-axis, the displacement of the particle is ? units to the right. Similarly for the left when it's below.
In our calculus-based course, we say that the particle's motion varies according to time. This means, that for every possible time we choose (t=0, t=1, t=244 etc.) the particle is at a certain displacement. That is why displacement is a function of time.
e.g. When x=sin(t) -> When t=0, x=0. So initially the particle is at the origin. When t=pi/2, x=1. So after pi/2 seconds have passed, the particle is 1m to the right of the origin. (Note that our unit for time is naturally seconds)
Displacement v.s. time just means displacement -> y-axis, and time -> x-axis
So instead of a y-axis and an x-axis, we have a new x-axis (representing displacement) and a t-axis (representing time).
EDIT: Occasionally they will use up and down instead of left and right. Although this is not common, if up and down are used just swap right and left with up and down respectively.