 Solution

Being constant on the two-element orbits is equivalent to $f(-x,-y)=f(x,y)$. In characteristic zero, comparing monomial coefficients shows that precisely the terms of even total degree survive. Thus a vector space basis isSet $u=x^2$, $v=xy$, $w=y^2$. The two basis types are $u^a{w}^b$ and $v{u}^a{w}^b$, so they prove $R=k[u,v,w]$. Hence $R$ is a finitely generated algebra. It is an integral domain as a subring of the integral domain $k[x,y]$.

The generators satisfy $uw-v^2=0$. To prove this is the whole relation ideal, reduce any polynomial in $U,V,W$ modulo the monic relation $V^2-UW$ toIts image in $k[x,y]$ is $A(x^2,y^2)+xyB(x^2,y^2)$. The first summand has both exponents even and the second both odd; their distinct monomials are linearly independent. Thus the image vanishes only when both $A,B$ are zero. ConsequentlyThis gives the requested closed embedding and the quadratic cone invariant ring presentation.

The associated morphism of algebraic varieties is explicitlyIt is surjective. For $(u,v,w)\in Y$, if $u\ne 0$, choose $x$ with $x^2=u$ using algebraic closedness and put $y=v/x$. Then $y^2=v^2/u=w$. If $u=0$, the relation forces $v=0$; take $x=0$ and choose $y^2=w$. This covers every point of $Y$. Except over the origin, the two preimages differ by the simultaneous sign change, consistent with the orbit description.

Finally the gradient of $UW-V^2$ is $(W,-2V,U)$, so the Jacobian criterion makes every nonzero point smooth. At the origin, the maximal ideal modulo its square has the three independent classes of $U,V,W$, since the defining relation is quadratic. The tangent space there has dimension three, while $Y$ has dimension two. Therefore