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How do I set a yes/no field value via dropdown?

I have a field that’s a yes/no field and then I have a dropdown on the page with static choices, yes or no. But when I do a workflow to set the field with this dropdown’s value, all I get is either yes, or no, but if I pick “this dropdowns value” it goes red and won’t work?

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The yes and no values in your drop down are text, and therefore not compatible with your yes/no field.
Try this in your workflow:
Include an “only when the dropdown = yes” to set the value “= yes”, and a corresponding “only when” for the no option.