We are looking for solutions of the recurrence $y_{n+2}-78y_n=0$.
We look for solutions of the shape $y_n=r^n$, where $r\ne 0$. Substituting in our recurrence, we get $r^{n+2}-78r^n=0$. Since $r\ne 0$, this simplifies to $r^2-78=0$. That is the auxiliary equation. the variable we use does not matter, we could say that the auxiliary equation, often called the characteristic equation, is $x^2-78=0$. The roots are $\pm\sqrt{78}$.
The same idea, applied for example to the Fibonacci recurrence $a_{n+2}=a_{n+1}+a_n$, gives $r^2-r-1=0$.
The general solution of $y_{n+2}-78y_n=0$ is therefore $A(\sqrt{78})^n +B(-\sqrt{78})^n$, where $A$ and $B$ are arbitrary constants.
To finish solving the recurrence we started with, we need to find a particular solution of $y_{n+2}-78y_n=23n^2$.