General reference : https://en.wikipedia.org/wiki/Distance_from_a_point_to_a_line
Here is an answer that (I think so) adresses the question.
Let us write the equation of line L under the form
$$f(x,y)=0 \ \text{where} \ f(x,y)=ax+by+c$$
Plugging the coordinates $x=x_0, y=y_0$ of point I in it,
Result: The value of $f(x_0,y_0)$ is proportional to the oriented (shortest) distance of I to the straight line L, with a constant proportionality factor.
Otherwise said : there exist a constant $K$ such that:
$$f(x_0,y_0) = K \times \ \text{dist}((x_0,y_0), L) \tag{1}$$
What is meant by "signed distance" ? Its absolute value is the ordinary distance ; its sign indicates the side of the straight line where point $I(x_0,y_0)$ is situated.
Example : In the graphical representation, $f(x,y)=x+y-1$ (in red), the values of $f(x_0,y_0)$ for different points are given. You can check that they are all proportional to the distance, with a proportionality factor equal to $\sqrt{2}=\sqrt{a^2+b^2}=sqrt{1^2+1^2}$.
This graphical representation features different "level lines" for function $f(x,y)=c$ :

Example : point $I(1,1)$ is such that
$$f(1,1)=1 \tag{2}$$
The constant $K$ being $\sqrt{2}$, formula (1) gives:
$$dist(I,L)=1/\sqrt{2}=\sqrt{2}/2$$
which is indeed half the length of the diagonal of a square with side 1.
Remark: there is a re-interpretation using a generalization of (2) by considering equation $z=f(x,y)$, which is the equation of a slant plane P intersecting horizontal plane along line L. The level lines mentionned above are plainly the projection onto horizontal $x-y$ plane of level lines of this plane P. I don't go further on because I know by experience that invoking 3D geometry for understanding 2D concepts is often very fruitful, but can also be confusing for learners.