The explict notation is the folowing.
you have i,j particle indexes, and you have the following definitions:
$\vec r_{ij} = \vec r_j - \vec r_i $ , where $\vec r_i$ is the position of the $i$-th particle.
$W(\vec r_{ij},h_i)$ is the smoothing-kernel evaluated between the 2 SPH particles, using the smoothing parameter of the j-th particle.
The notation he uses is the following:
$\nabla_i W_{ij}(h_i) = \frac{\partial W(\vec r_i - \vec r_j,h_i)}{\partial \vec r_i}$
In (most) hidrodynamic aplications of SPH, the usual convention is that for all i, $h_i=h$ is fixed, and $W(\vec r_{ij},h) = w(\frac{|\vec r_i-\vec r_j|}{h})$, and so, you can think that you have an $W(\vec r)$ and you have $\nabla W = \nabla w(r) = w'(r)\hat r$, ando so, in this case, we write:
$\nabla_i W_{ij}(h_i) = w'(r_{ij},h)\frac{\vec r_i - \vec r_j}{|\vec r_i - \vec r_j|}$
and so, you have an explicit formula for this gradient with respect to the i-th particle
It's possible to formulate an SPH formula with $h_i$ depending on the particle, and on the near particles (through the, implicit, dependence on $\rho_i$), and when you do that, you need to introduce 'correcting schemes', which involve calculating things like $\Omega_i = 1-\frac{\partial h_i}{\partial \rho_i}\sum_k m_k\frac{\partial W}{\partial h_i}(r_{ij},h_i)$
I personally don't like this kind of 'correction scheme' which involves changing the smoothing parameter(or using constant, but different parameters for each particle), but, it's a legit try, and in many occasions it works. Still, it makes difficult to enforce symmetries and conservations laws on the system based only on the equations of movement.