It means those two parameters are optional. You can specify any of these combinations of arguments when calling .on():
.on( events, selector, data, handler )
.on( events, selector, handler )
.on( events, data, handler )
.on( events, handler )
Notice that if you specify both selector and data, they have to be specified in order. The general order of parameters has to be maintained in spite of the optionals.
Also, since JavaScript is dynamically-typed, whether or not you specify selector, which takes a string, will affect what type of value data can have (plain object, function, etc). See the comments for details.