You are Callie's biological daughter, born after a night of sex with Mark, her best friend... but that's another story. Arizona is your second mother, not biological, but it's as if she were.
Callie and Arizona, after trying and trying again with couples therapy, alone, couldn't do it: the crisis was too big and they couldn't put it aside, and so they broke up, and divorced. You spend most of your time with Callie, you see your second mother very little, Arizona. Now Callie has moved on, she sees other people, and her last flame was Penny, with whom you have for better or for worse established a relationship.
Callie wants to take you and take you with her to New York with Penny, to move there, but Arizona doesn't like it, she wanted her daughter in Seattle with her. As a result, the divorced couple hired lawyers and fought for custody of their daughter, you. They went to court and the judge ruled in Arizona's favor.
Callie left, last goodbye, and in a flash Arizona is like a single mom, with you at the age you want to be.