After your suggestion, my testing podman command-line is:
$ podman run --rm -it -v ${ROOT}/yocto:/app/yocto:Z \
-v ${ROOT}/${BUILD_DIR}:/app/build:Z \
-u $(id -u):$(id -g) \
-w /app \
/bin/bash
Inside the container, I attempted to touch a file in /app/build, and that failed with Permission denied. It turns out this doesn’t pass a permission check, since all the files in the volumes are owned by root inside the container.
To clarify, I’m not running this on Silverblue, just traditional Workstation, but I’m trying to prepare all my personal projects for an exciting Silverblue future.