It is to Android apps what WINE is to Windows programs, while Waydroid is to Android apps what something between Docker and a VM would be to server software.
Actually, Waydroid is not too dissimilar from running, for example, an Ubuntu Desktop system in a Docker container on a Debian desktop system, just so you can use snap packages… Instead of installing snapd on Debian. (Not that I want snapd.)
Waydroid is more like an Android container appliance that runs a full Android system, while ATL, as the name Android Translation Layer suggests, translates functions and API calls, used by Android apps, into the appropriate methods of doing things on a regular GNU/Linux system (in contrast to an Android Runtime/Linux system), thereby being much more efficient, more comfortable to use and having the potential of integrating into the system really well.
Just type in a few commands and you’ll have an image you can flash.
I’ve got a detailed description of what to do: https://git.erebion.eu/forgejo/erebion/sargo-temp