What does it mean in a pattern to "bind off the first 2 stitches'? Does it mean that I will be binding off a total of just one stitch by binding off the first 2 stitches or does it mean to bind off 2 stitches thereby using the first 3 stitches?

k2 sts pass one over, k1 pass one over. You count the sts passed over, not how many you knit.