A piezo is a crystal with provides electricity due to the impact of pressure.
I'm familiar of that as a reasion of my profession. There are fuzes with piezo as the switch, because they are very sensitive towards any pressure. In worst situation steps on the ground in vicinity of such equipped ammunition/explosive device could lead to ignition. Could be aswell wind in trees, when UXO has been caught by this vegetation.
Because of the structure borne noise sensitivity of piezos, they are fine for guitar amplification, too. As mentioned they
could make a electric guitar sound like an acoustic. If the piezo offers a tone poti the sound could be from nylon string-ish (closed poti) to a crips steel string (fully open poti).
Most common in electric guitars is the integration of piezo elements in each bridge saddles. Rare is the integration in the last fret of the fretboard.
I do have two piezo equipped guitars.
Left: Linus Custom Thinline with a Fishman/Wilkinson VS-50P bridge.
Right: Parker Fly Deluxe with a Fishman bridge.
Although the construction of the guitars is obviously different, they doesn't sound different,
neither piezo only, nor blended with the magnetic pickups.