What’s going on here is Friedman was trying to avoid bogging the reader down with technicalities of the quote reader macro right away, so he provided examples that were very simple but which didn’t actually work when typed as-is into a REPL. At some point somebody thought they should provide working code, but they didn’t want to junk up the original text, so they added the code as a footnote.
The preface says:
Moreover, you may need to modify the programs slightly. Typically, the material requires only a few changes. Suggestions about how to try the programs in the book are provided in the framenotes. Framenotes preceded by "S:" concern Scheme, those by "L:" concern Common Lisp.
Atom just means anything that isn’t a list. As you work through the exercises you’ll need to be able to test an element of a list to see if it is another list. They’re introducing a term for a non-list thing.
Also be aware quoting is handled by the reader, the process of reading and evaluating the expression consumes the quote, so:
(quote atom)
evaluates to
atom