If you're familiar with SSH keys, it's basically the same thing but written for everything to use rather than just written for SSH.
Passkeys can also be managed by TPMs/device hardware to provide private keys that (assuming things are properly designed) can't be stolen and are bound to the device itself. This isn't a requirement however, which is why things like 1password, Chrome, etc can sync passkeys.
They're basically syncing the one-or-more private keys that back your logins.