Mathematical expressions involving many letters and other symbols are often used to define functions, such as
$$ax^2+bx+c.$$
Writing $n$ for the number of distinct letters involved (four in the example above), the domain of the function one has in mind is usually not as big as $\mathbb R^n$, but rather $\mathbb R^m$, where $m$ is the number of a chosen subset of letters which are called the variables, while all others are called parameters.
Of course, in order to define a concrete function, the parameters must be assigned fixed values, with different choices leading to different functions.
Speaking of the example above, a popular choice is to call $x$ the variable and $a$, $b$ and $c$ the parameters, but nothing prevents us from making other choices.