Yes, the first condition is implied by the second one, to see that, let $u \in W$. Then for any $t \in \mathbb R$: $\def\
orm#1{\left\|#1\right\|}\def\<#1>{\left(#1\right)}$ $$ \
orm{x-y-tu}^2 = \
orm{x-y}^2 + 2t\
orm{u}^2 =: f(t) $$ Note that $f$ has a local minimum in $t=0$ by the second condition, giving $$ 0= f'(0) = 2\
Now suppose the first condition holds, then we have for any $u \in W$: \begin{align*} \
orm{x-u}^2 &= \
orm{x-y+y-u}^2\\\ &= \
orm{x-y}^2 + 2\underbrace{\
orm{y-u}^2\\\ &\ge \
orm{x-y}^2 \end{align*} So both conditions are equivalent.
* * *
Yes, $y$ has a name, it is called the image of the orthogonal projection of $x$ onto $W$, the map $P_W \colon \mathbb R^n \to \mathbb R^n$, $P_W x = y$ is called the orthogonal projection onto $W$.