${2:-PATH} is an example of
parameter substitution, which in this case sets a default value for the variable. It says to use the $2 positional parameter if it exists, or to use whatever follows the ":-" if it doesn't. I'm not sure what "PATH" is here though. Since it's not being called as a variable, it would just be interpreted as a literal string. Perhaps it should be $PATH instead?
Not knowing anything about LFS or how you configure the startup scripts with it, I can't tell you more than that.