If $x(0)=0$ and $y(0)\gt0$, then $x(t)=0$ for every $t$ and $y(t)\to0$ when $t\to\infty$. If $x(0)\gt0$ and $y(0)=0$, then $y(t)=0$ for every $t$ and $x(t)\to2$ when $t\to\infty$. Hence $x(t)$ describes the amount of preys (which can survive without predators) and $y(t)$ describes the amount of predators (which die out without preys).
To show that $x(t)\to2$ when $t\to\infty$ when $y(0)=0$, one can use a phase diagram: since $x'(t)=x(t)(2-x(t))$, the function $t\mapsto x(t)$ decreases at times $t$ such that $x(t)\gt2$ and increases at times $t$ such that $0\lt x(t)\lt2$.