M4B only shows chapters and bookmarks in apps that treat it as an audiobook. MP3 plays on every phone, computer, car stereo and speaker. An M4B file usually holds AAC with chapters. M4B is at home in audiobooks with chapters and a remembered playback position; MP3 is the usual choice for music and podcasts that must play anywhere. Both formats are lossy, so the content is compressed a second time; start from the best copy you have.
The defaults suit most files. Under Options you can choose the bitrate and trim the start and end.
The conversion uses your browser's own video and audio codecs (WebCodecs), with hardware acceleration where the device has it; the file is read from disk as it goes and can be up to 2 GB. Where the browser lacks a codec, the page falls back to the compatibility engine. MP3 is written at 192 kbps unless you choose another bitrate.