Truly random, truly private
Every character is picked with the secure random generator of your browser, the same one used for encryption, with equal odds and no bias. The password is created on your device and is never sent to a server, logged or stored, not even by us.
The strength shown is the real entropy of the settings you chose, in bits, together with an estimate of how long an attacker trying ten billion guesses per second would need on average. 80 bits and more is very strong for any online account.
Practical options
Turn on Avoid look-alike characters when a password has to be typed by hand or read aloud, so 0 and O or 1, l and I are never confused. Generate up to 500 passwords at once for new user accounts or test data. Use a different password for every site and keep them in a password manager.