How to Generate an App-specific Password for Yahoo.comWhat is App-Specific Password? App-specific passwords add an extra layer of security to your Yahoo account. They allow you to sign in to your account and securely access your information stored in Yahoo from a third-party app. App-specific passwords maintain a high level of security and help ensure your Yahoo account password won’t be collected or stored by any third-party apps you use. How to Generate an App-Specific Password? Step 1.