I was hacked. On my phone in settings there is a notification that my saved passwords have been compromised is this from a hacker or apple. Do I really need to change my passwords it has boxes to click on to ch

Most likely this is a scam. Don't fall for it. Apple will never send you a message that your passwords have been compromised.

In order for there to be any potential possibility that this phone was hacked, all of the following would have to be true:

• The hacker would
  • need to know your Apple ID username & password.
  • need to know your iPhone's passcode.
  • have to have your exact fingerprints for Touch ID.
  • have to look exactly like you for Face ID.
  • have physical possession of your phone.

The only other thing would be if you have jailbroken the phone.

You should, as a minimum, just change your Apple ID password. It is totally up to you, if you want to change any others. Actually, it is a good idea to consider the following four things when it comes to passwords:

1. Use strong passwords.
2. Never use the same password for different accounts.
3. Change them every 30-60 days.
4. If an account allows for two-factor password authentication, enable it.

Ref:

• If you think your Apple ID has been compromised - Apple Support
• Identify legitimate emails from the App Store or iTunes Store - Apple Support
• Recognize and avoid phishing messages, phony support calls, and other scams - Apple Support

You are describing a feature from Apple. Learn more about it at Change weak or compromised passwords on iPhone - Apple Support

You were not hacked. Apple compared login information against leaks from companies and blackest sites. The passwords listed are either reused (same username/password combo), or have appeared in leaks. It’sa good idea to change the passwords as you don’t know where they may end up.