Its typically a group audition with a panel of experienced instructors and management. They give you about 5 minutes to teach a portion of a set sequence to see how you hold space in the room.
In order to be a yoga instructor, you have to go through an intensive weekend and then audition. They frame it as "Yes" or "Not Yet" because they genuinely want teachers to improve and grow.
It is usually a group audition teaching a specific portion of a set sequence the company they want to see that you can use their cueing formula and hold space confidently