For convenience, let's name the two points on the line and the origin:
$A = (x_1,y_1),$ $B = (x_2,y_2),$ and $C=(0,0).$
Then the magnitude of the determinant $D = \begin{vmatrix}x_1&x_2\\y_1&y_2\end{vmatrix}$ is twice the area of the triangle $\triangle ABC.$
But the area of $\triangle ABC$ is $\frac12 d_r h,$ where $d_r$ is the length of the segment $AB$ and $h$ is the distance of $C$ from the infinite line
through $A$ and $B.$
So $\lvert D\rvert = d_r h,$ and we can eliminate the need for the absolute value by squaring both sides of the equation: $D^2 = d_r^2 h^2,$
and therefore $h^2 = {D^2}/{d_r^2}.$
Note that we have the following cases:
Case $r^2 d_r^2 - D^2 = 0.$ Then $r^2 = {D^2}/{d_r^2} = h^2,$
and the infinite line $AB$ is tangent to the circle of radius $r.$
Case $r^2 d_r^2 - D^2 > 0.$ Then $r^2 > {D^2}/{d_r^2} = h^2,$
that is, the radius of the circle is greater than the distance to the line,
and the infinite line $AB$ intersects the circle of radius $r$ twice.
Case $r^2 d_r^2 - D^2 < 0.$ Then $r^2 < {D^2}/{d_r^2} = h^2,$
and the infinite line $AB$ does not intersect the circle of radius $r$ even once.
That does not explain all the details of the formulas,
but it seems like a good reason why the determinant might show up there.