Intuitively, what you wrote makes sense. In calculus we use phrases like "vanishingly small" for intuition but really all of this is only made rigorous using the notion of a limit.
"What this essentially means" is that if $f$ is a function of $x$ and $y$, and we want to know "how much $f$ changes" at a point $(x_{0},y_{0})$, this change is going to depend on how much $x$ and $y$ change, weighted by how greatly changes in $x$ and $y$ at the point $(x_{0},y_{0}$) affect the value of $f$. The partial derivatives $f_{x}$ and $f_{y}$ tell you just that: how much the value of $f$ changes relative to changes in $x,y$ (respectively). Now, the equation you wrote encapsulates the idea, but keep in mind that the values of the partial derivatives depend on the point we're looking at.
It might help to compare this to the analogue of the formula you wrote for functions of one variable; in this case it will be
$$df = f'(x)\ dx$$
To continue the above analogy, this says "changes in the value of $f$ are determined by the derivative $f'$ multiplied by the vanishingly small change in $x$". Here, $f'(x)$ is our usual derivative; for functions of multiple variables we need to instead look at partial derivatives.
There is a bigger picture here: linearization. Recall that for functions $f(x)$ of one variable, we have the formula
$$f(x)\approx f(x_{0})+f'(x_{0})(x-x_{0})$$
for $x$ near $x_{0}$. In other words, if you zoom in near the point $x=x_{0}$, the graph of $f$, which is a $2$-dimensional curve, will look like a (one-dimensional) line, and the equation of that line is the one given above, with $\approx$ replaced by $=$, $\ df$ replaced by $f(x)-f(x_{0})$ and $dx$ replaced by $(x-x_{0})$. We refer to this as the tangent line to the graph of $f$ at $x=x_{0}$.
For functions of two variables, the graph is a surface in $3$-space, but if we zoom in near a point, the graph looks like a plane (a two-dimensional object). The corresponding tangent plane approximation to the graph of $f(x,y)$ at this point is
$$f(x,y)\approx f(x_{0},y_{0})+f_{x}(x-x_{0})+f_{y}(y-y_{0})$$
Notice that if we write $df$ for $f(x,y)-f(x_{0},y_{0})$, $dx$ for $(x-x_{0})$ and $dy$ for $(y-y_{0})$, we get exactly the equation in your question.
This idea works in higher dimensions but things get harder to visualize!