The specifics ultimately depend on upon what you mean by a variable being "set", "blank", etc. If you mean the value is an empty string or nothing but white-space, then probably the most thorough expression (i.e.: won't possibly throw notice-level errors if either variable is not set at all) would be:
if((!isset($var1) or (trim($var1) === "")) and (!isset($var2) or (trim($var2) === "")))
{
// neither variable is "set"
}