It is helpful to realize that the distance formula is simply the Pythagorean theorem applied to a two-dimesional x-y coordinate system.
The x- and y-dimensions are perpendicular to one another. So calculating distances involves horizontal and vertical distances, and that invites the use of this theorem.
(Recall that the Pythagorean theorem is a2 + b2 = c2, where a and b are the lengths of the legs and c is the length of the hypotenuse.)
The x-distance represents the length of one of the legs. So, calculate the x-distance by subtracting the x-values from one another: x1 - x2 and then squaring the result. In this case, 7 - 0 = 7, and when squared we have 49.
The y-distance represents the length of the other leg. Similar to what we did for the x-values, we need to subtract the y-values from one another. In this case, we have 2 - (-7) = 2 + 7 = 9, and when squared we have 81.
Note that we are working with ordered pairs. This term is used to reinforce the fact that x is always first and y is always second. If you have any problem rembering this, use this to help you: "x is before y in the alphabet, and x is before y in algebra". (Mathematicians like to use the most concise notation possible.)
Finally, add the squared distances and then take the square root. 49 + 81 = 130, and the square root of 130 is 11.402 to 3 decimal places of accuracy. When rounded to the nearest tenth, this is 11.4
Using these steps will make it easier to understand and remember the distance formula, in my experience.
Note that which way you subtract the values does not make a difference because squaring the result always yields non-negative values. You do have to keep the x-values separate from the y-values, but this formula is much harder to make a mistake with than, for instance, the slope formula.
Also, many math teachers prefer that you leave the value as a radical, since that is an exact value.
In addition, you will soon learn how to reduce radicals to their "standard" value. √130 cannot be reduced. But this is often the last step when a reduction is possible, other than checking your work. The right answer to the wrong problem has no useful value.