It uses the same FIDO2 standard. The only difference is the branding of it and possibly where you store them. You can store passkeys just fine on a hardware key or TPM. Where it becomes interesting is when storing them in the cloud because that means that it’s not bound to the hardware and not stored in a secure chip. I would not recommend that at this point for important accounts. Besides that also makes it that you have only one entry using that cloud provider and that is quite an availability risk IMO.
The ‘only’ thing that is more secure about passkeys vs generated passwords (both are generated secrets) is that passkeys authenticate the requestor too. I won’t go in all details (you can search for that), but to keep it simple, it does so by sending a challenge (public key cryptography) to website requesting your passkey. Only if the result of that matches the expected it will continue. Using passkeys is therefore is phishing resistant, which is a great deal. Everyone will one day fall for a sophisticated phishing attack, so passkeys are not just amazing UX improvement but also a massive security improvement, and not just for the less skilled user.
Conclusion is: yes use passkeys. YubiKeys are by far the best way to do this, no I wouldn’t be scared to use the build in TPM either, that really is quite good. Probably you don’t want to use cloud based (synced) passkeys.