Unfortunately I've forgotten some notation I came across recently. Can someone clarify what is the meaning of what is shown in the red box?
The book is Probability Essentials by Jacod-Protter.
$\|X_{n}-Y_{n}\|>\varepsilon$ is notation for the set $A:=\{x\in\Omega:\|X_{n}(x)-Y_{n}(x)\|>\varepsilon\}$. Thus, $1_{\{\|X_{n}-Y_{n}\|>\varepsilon\}}$ is the indicator function of the set $A$. I.e., $$ \begin{aligned} 1_{\{\|X_{n}-Y_{n}\|>\varepsilon\}}(x)&= \begin{cases} 1 &\text{ if }x\in A\\ 0 &\text{ if }x\notin A \end{cases} \\ &= \begin{cases} 1 &\text{ if }\|X_{n}(x)-Y_{n}(x)\|>\varepsilon\\ 0 &\text{ if }\|X_{n}(x)-Y_{n}(x)\|\leq\varepsilon \end{cases} \end{aligned} $$
Thus, $E\{|f(X_{n})-f(Y_{n})|1_{\{\|X_{n}-\|Y_{n}\|>\varepsilon\}}\}$ is the expected value of the function $g(x)$, where
$$ \begin{aligned} g(x)= \begin{cases} |f(X_{n}(x))-f(Y_{n}(x))| &\text{ if }\|X_{n}(x)-Y_{n}(x)\|>\varepsilon\\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 0 &\text{ if }\|X_{n}(x)-Y_{n}(x)\|\leq\varepsilon \end{cases} \end{aligned} $$