“Passkeys are secret codes used to sign into websites your device keeps safe and only uses after you unlock it. Some hardware keys, like certain YubiKeys, can also store passkeys if they’re FIDO2-ready. Hardware keys can act as two-factor authentication, portable passkeys, or both. (Older hardware keys work only for two-factor sign-ins.)”
Go to YubiKeys, Passkeys & Confusion: Let’s Clear It Up for the description.