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The solution by @MathLover1 is incorrect.
It is incorrect, because the formula for the distance from the point (0,2) to the point (x,y) is , and not .
The final curve should be a parabola, not a hyperbola.
I know it very well, since I solved similar problems several times at this forum.
The correct solution is below.
Solution
The distance from (, ) to the x-axis is |y|.
The distance from (, ) to the point (, ) is .
The base equation is
|y| = .
Square both sides of this equation and solve for.
=
=
=
4y =
y = <==========> parabola with the branches upward; the vertex at the point (0,1)
Plot y = + 1