Earlier quoted context omitted.
I've got the same setup, it's pretty great. One thing, though: make sure you have another way of decrypting your passwords! I lost my Yubikey once, and I lost all my passwords. Now I have a copy of that key on a USB drive I keep at home in a small safe.
What's the best way to backup the private key on your yubikey? Do you just generate it on your computer instead of on your device, and then back that up?
Here's a nice tutorial on it: https://www.jfry.me/articles/2015/gpg-smartcard/