Google's password checking feature has slowly been spreading across the Google ecosystem this past year. It started as the "Password Checkup" extension for desktop versions of Chrome, which would audit individual passwords when you entered them, and several months later it was integrated into every Google account as an on-demand audit you can run on all your saved passwords. Now, instead of a Chrome extension, Password Checkup is being integrated into the desktop and mobile versions of Chrome 79.
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All of these Password Checkup features work for people who have their username and password combos saved in Chrome and have them synced to Google's servers. Google figures that since it has a big (encrypted) database of all your passwords, it might as well compare them against a 4-billion-strong public list of compromised usernames and passwords that have been exposed in innumerable security breaches over the years. Any time Google hits a match, it notifies you that a specific set of credentials is public and unsafe and that you should probably change the password.
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