Databricks Secrets is the recommended approach for managing secrets securely within Databricks. It encrypts the stored values at rest and in transit, providing an added layer of security. Other methods, such as storing secrets directly in notebook code, embedding them in environment variables, or including them in plain text files, pose significant security risks by potentially exposing sensitive information. While third-party password managers can be secure, Databricks Secrets offers a native, integrated solution specifically designed for this purpose within the platform.