Earlier quoted context omitted.
The password itself is not sent. You can read about it here: https://www.troyhunt.com/ive-just-launched-pwned-passwords-v...
He's suggesting using (the link is from your link): https://haveibeenpwned.com/Passwords Which does upload your password, which I think is an unacceptable risk.
It sends the first N characters of the SHA1 hash of the password you provided to the server, the server replies with all the hashes it knows with that prefix, and then the client-side JS compares it to the rest of the hash it has.
If you don't believe me, you can look at the request said site issues for some arbitrary string - it's just the first 5 characters of the SHA1 hash, and the response from the server is as I (and that link) describe.
[1] - https://www.troyhunt.com/ive-just-launched-pwned-passwords-v...