The earth's surface is made of land and water.

Literal

Land [and-と] water [with-で] earth [possessive-の] surface [topic-は] is-made.

陸と水で (with land and water) uses で for composition — 'made up of.' 地球の表面 (earth's surface) is straightforward. 出来ている is the ている form of できる meaning 'is composed of.'