Back up a bit. The first $\mathbf{r}(t)$ in that paragraph is a vector equation for $C_1$, that is, the curve defined by equations $y=1$ and $z=f(x,y)$. We could translate it into parametric equations as $x=t$, $y=1$, and $z=f(t,1) = 2-t^2$.
$T_1$ is the line tangent to $C_1$ at the point $P=(1,1,2)$. With the vector equation $\mathbf{r}(t)$ used above, $T_1$ has direction vector $\mathbf{v}$ given by $\mathbf{r}'(1)$. Since $\mathbf{r}'(t) = \left<1,0,-2t\right>$, we have $\mathbf{v} = \left<1,0,-2\right>$.
The second $\mathbf{r}(t)$ is a vector equation for $T_1$. We can construct this using the point $P$ and the direction vector $\mathbf{v}$. Setting $\mathbf{r}_0 = \overrightarrow{OP} = \left<1,1,2\right>$, $T_1$ has vector equation
$$
\mathbf{r}(t) = \mathbf{r}_0 + t \mathbf{v} = \left<1,1,2\right>+t\left<1,0,-2\right> = \left<1+t,1,1-2t\right>
$$
It's perhaps unfortunate that Stewart uses $\mathbf{r}(t)$ as a generic variable for vector functions, rather than a specific named one. But it's akin to giving parametric equations for $C_1$ as $x=t$, $y=1$, and $z=2-t^2$, then immediately after giving parametric equations for $T_1$ as $x=1+t$, $y=1$, and $z=1-2t$. The $x$, $y$, and $z$ in each set of equations are just variable names.