Yoyo "bearings" come in a variety of materials and forms. The most basic is wood. The original yoyo was formed around a fixed non bearing axle.
The next step up is plastic or Nylon. This provided a noticeable improvement but you can only get so much mileage out of something that was simple and inexpensive.
Roller bearings or ballbearings represented the a major improvement and ushered in the era of high performance yoyos. Most of the toy grade products utilize an unrated or ABEC 1 bearing.
In an attempt to improve performance of these bearings, competitive players sought out high ABEC bearings made of high grade materials such as stainless steel.
The term ABEC stands for Annular Bearing Engineering Council. The higher the ABEC rating, the lower the friction and smoother and faster roll. ABEC ratings are given in odd numbers only 1,3,5,7 and 9.
Today, ceramic bearings are the hottest thing in yoyo technology. They are lighter, smoother, stiffer, harder, and corrosion resistant. These characteristics allow for a wide range of performance enhancements in bearings. Ceramic dissipates heat quickly, reducing friction and wear while maintaining a precision smooth surface. Today's leading edge ceramics are made with Silicon Nitride (Si3N4) and have characteristics similar to the heat absorbing, highly resilient tiles on the Space Shuttle.