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But why is the order switched below?

Functional notation: light-dark(light-color, dark-color)

It's not.. `light-color` refers to the colour you want presented if the user's preference is for a "light" theme.

It's not declaring the relative brightness of the two colours - I agree it could be documented a little less ambiguously with something like `light-theme-color`.

I got confused because I thought it would set a background color. For text it's inverted and hence correct.

It sets the foreground/text color because it's used with the `color` property (https://developer.mozilla.org/en-US/docs/Web/CSS/color). You can use it to set the background color too in which case you'd do `background-color: light-dark(white, black);`

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