The plane created by that line is an horizontal plane (as for the normal being Vector3.up) that crosses the origin of coordinates (as for the point being Vector3.zero).
Vector3 is just a set of three coordinates, x y z. It may represent a vector or a point, depending on the usage. The constructor “new Plane(Vector3, Vector3)” takes the first parameter as a 3D vector and the second parameter as 3D point.