In that ring, $y^2 = -1- x^2$, and so, powers of $y$ with exponent greater than $1$ can be eliminated in the expression of residue classes. That is, every $p(x,y)\in \mathbb{R}[x,y]/(x^2+y^2+1)$ can be written:
$$p(x,y) = a_{0}(y) + a_1(y)x + a_n(y)x^2 + \dots + a_n(y)x^n$$
where each $a_i(y) = b_i + c_iy$ is a polynomial of degree one.
Another way to understand this ring is as the ring of real polynomial functions defined on the subvariety given by the equation:
$$x^2 + y^2 = -1$$
It has no real points, so it's more natural to consider it as a complex variety. Still, you can consider polynomials with real coefficients restricted to it, and that gives the ring $\mathbb{R}[x,y]/(x^2+y^2+1)$.