Any finite-dimensional vector space $V$ is isomorphic to a coordinate vector space $\mathbb{R}^n$ which can be thought of as the vector space of functions $\{1,\cdots,n\}\to \mathbb{R}$.
Generalizing this, we can use a different index set than $\{1,\cdots,n\}$, for instance we can use a continuous interval as an index set. Then a "coordinate vector" whose indices are from $[0,1]$ should be thought of as a function $[0,1]\to\mathbb{R}$.
The dot product $f\cdot g=\sum_i f_i g_i$ (I will put all my indices downstairs) for $\{1,\cdots,n\}$-indexed coordinate vectors can then be generalized to $\langle f,g\rangle=\int_0^1 f(x)g(x)\,\mathrm{d}x$. Similarly, the equation $f=Ag$ (where $f,g$ are column vectors and $A$ is a matrix), written with indices as $f_i=\sum_j a_{ij}g_j$, with integration replacing summation becomes the kernel $f(x)=\int_0^1 A(x,y)g(y)\,\mathrm{d}y$.
With this perspective in mind, tensor contraction should generalize in an obvious way. For instance, the tensor contraction $\sum_{i,j,k} a_{ijk}b_{ir}c_{js}e_{kl}$ is now $\iiint a(i,j,k)b(i,r)c(j,s)e(k,l) \,\mathrm{d}i\,\mathrm{d}j\,\mathrm{d}k$, which is a function of $r$, $s$ and $l$. Indeed, the original kind of tensor contraction with a discrete set of indices can be considered a special case, since summation is just integration over a finite measure space.
Now let's consider tensor products. If $\mathbb{R}^X$ denotes the vector space of functions $X\to\mathbb{R}$, there is a canonical identification $\mathbb{R}^X\otimes\mathbb{R}^Y\cong\mathbb{R}^{X\times Y}$. There is a bilinear map $\mathbb{R}^X\times\mathbb{R}^Y\to\mathbb{R}^{X\times Y}$ where the pair $(f,g)\in\mathbb{R}^X\times\mathbb{R}^Y$ is sent to the function $X\times Y\to\mathbb{R}$ defined by $h(x,y):=f(x)g(y)$, and this extends to an isomorphism $\mathbb{R}^X\otimes\mathbb{R}^Y\to \mathbb{R}^{X\times Y}$. This works even if $X$ and $Y$ aren't discrete.
Pure tensors $u\otimes v$, then, correspond to separable functions $u(x)v(y)$. So then any arbitrary linear combination $\sum_i c_i(u_i\otimes v_i\otimes w_i)$ would correspond to a linear combination $\sum_i c_iu_i(x)v_i(y)w_i(z)$ of separable functions. (For example in differential equations, we sometimes find the separable solutions first, then superpose them to get the whole solution space.)