In this equation, displaystyle delta xy represents the growth of the predator population. (Note the similarity to the predation rate; however, a different constant is used as the rate at which the predator population grows is not necessarily equal to the rate at which it consumes the prey). displaystyle gamma y represents the loss rate of the predators due to either natural death or emigration; it leads to an exponential decay in the absence of prey.
Hence the equation expresses the change in the predator population as growth fueled by the food supply, minus natural death.