Any MySQL client can reach to any MySQL server, barring network limitations.
The "normal" connection is via a "socket" on the same server. By using a hostname or IP-address, PHPMyAdmin can look at MySQL on some other server (or VM).
The optional "port" (default is 3306) is a way of having multiple servers on a single machine.
Note: I did not use "domain" in the discussion above. "google.com" is a domain, but there are a zillion servers, many of them running MySQL (or other db software), in that domain. You would need to know the specific machine name or IP to get at one. (And then you would have to fight security barriers.
A more likely example is amazon.com (or some other cloud provider). They may let you get at every one of your servers via different hostnames and/or IP-addresses -- all from the same client (such as PHPMyAdmin).
And each of what you see as a "server" may actually be just a piece (VM) of a physical machine.