The first step to using Windows 11's Xbox mode is to ensure that it's turned on, which it may not be by default. To do so, open Settings by using the Win + I shortcut, then select Gaming > Xbox mode.
Here, if you see an Enable Xbox mode slider, enable it. You may also see a Choose home app section, where you should select Xbox. If you want quicker access to Xbox mode from the desktop, also enable Show Xbox mode in Task View. And if you end up loving the feature and only use your PC for gaming, Enter Xbox mode on startup will save you some time.
Xbox mode is accessible through several paths. The keyboard shortcut Win + F11 toggles between the desktop and Xbox mode. You can also use Win + G to open the Game Bar, click the gear icon in the bar centered at the top of the screen, then choose Enter Xbox mode. If you're in the Xbox app, you'll see a shortcut at the top-right of the home page. Lastly, if you enabled the Task View option above, press Win + Tab and you'll see an Xbox mode shortcut to the right of your open desktops at the bottom of the screen.
While playing, pressing the Windows key on your keyboard enters a task view where you can access the Windows desktop, as well as shortcuts at the top of the screen. To exit Xbox mode, return to the Xbox app home screen and click the Exit Xbox mode button in the top-right. You can also use Win + F11 again.
A common misconception is that Xbox mode brings under-the-hood improvements to performance while gaming, but Microsoft has made no such claim. This is handled by a separate toggle: Settings > Gaming > Game Mode, which "turns things off in the background" to improve your gaming experience. While vague, it's worth turning this on if you don't have it enabled already.
What Xbox mode does is get the most computer-y parts of Windows out of the way, replacing them with a full-screen experience dedicated to gaming that's friendly to use with either a controller or keyboard and mouse. In other words, it's Microsoft's answer to the Big Picture Mode in Steam.