So we have two functions $x = x(t)$ and $y = y(t)$ defined for $t \in [a,b]$.
For every $t$ we can combine the values of those functions into a point with coordinates $(x(t),y(t))$. Then, if we consider all the points for every $t\in[a,b]$, we'll get some curve $L$, which is called a parametric curve with parameter $t$.
Choose some $t_0$ from $[a,b]$, which would give you a point on a curve $(x(t_0),y(t_0)) = (x_0,y_0) \in L$. The whole curve can be really wild - intersecting itself, going vertically up or down, etc. - but in some small enough neighbourhood of $t_0$ it will (usually) look like a graph of some function $Y(x)$. Knowing that both $x$ and $y$ are actually functions of $t$ we can write that $x = x(t)$ and $y=y(t)=Y(x(t))$ (near $(x_0,y_0)$).
Now, we can analyse $Y(x)$ using plain old calculus and, in doing that, we can analyse the parametric curve near $(x_0,y_0)$.
Let's find the first derivative $Y'(x)$:
$$
\begin{array}{l}
y(t) = Y(x(t)) \\
y'(t) = Y'(x(t)) \cdot x'(t) \\
Y'(x(t)) = \frac{x'(t)}{y'(t)}
\end{array}
$$
or $\frac{dY}{dx}$, in dx-dy notation:
$$
\begin{array}{l}
\frac{dy}{dt} = \frac{dY}{dx} \frac{dx}{dt} \\
\frac{dY}{dx} = \frac{dx}{dt} / \frac{dy}{dt}
\end{array}
$$
So now we can plug $t$'s in the formula we got and that would give us the rise-over-run values for $(x(t),y(t))$, so we can judge whether the curve's going up or down, draw our tangent lines, etc.
Now, for the second derivative $Y''(x)$ !
$$
\begin{array}{l}
(Y'(x(t)))^{'}_t = (Y'(x(t)))^{'}_x \cdot x'(t) \\
(Y'(x(t)))^{'}_t = Y''(x(t)) \cdot x'(t) \\
Y''(x(t)) = \frac{(Y'(x(t)))^{'}_t}{x'(t)}
\end{array}
$$
or, using dx-xy notation, we want to find $\frac{d^2 Y}{dx^2}$:
$$
\begin{array}{l}
\frac{d}{dt}\left[\frac{dY}{dx}\right] = \frac{d^2 Y}{dx^2} \frac{dx}{dy} \\
\frac{d^2 Y}{dx^2} = \frac{d}{dt}\left[\frac{dY}{dx}\right] / \frac{dx}{dy}
\end{array}
$$
So now you can tell whether your $Y(x)$ is convex or concave, which helps to better understand how $L$ looks.
We never actually fixed $t_0$ to some number, so these derivatives would be valid for every $t_0$, for which they actually exist (no division by zero and stuff like that). The only problem is there might exist another value $t_1$, such that $x(t_1)=x(t_0)=x_0$ and $y(t_1)=y(t_0)=y_0$, i.e. the curve might intersect itself at $(x_0,y_0)$. If so, there would be multiple values of $Y'(x(t))$ and $Y''(x(t))$ at $(x_0,y_0)$ - one for every $t_i$, such that $(x(t_i),y(t_i)) = (x_0,y_0)$. Which makes sense: if a curve intersects itself at a point, you can draw multiple tangent lines to it there.