A surname is like your family name. It tells people which family you belong to. People use surnames to know who is related to who. For example, if your last name is Smith, it means you are part of the Smith family, and people will know you are related to other people with the same last name.
Chao is a surname used by many people. They come from different places in the world, like China, Taiwan, and Vietnam. Just like how Smith is a very common last name in English-speaking countries, Chao is a common last name in these places.
A long time ago, there might have been a person who was called Chao and had lots of children. These children grew up and also had children, and so on. Over time, many people used Chao as their last name because they were all part of the same family.
Now, even if people don't know each other personally, if they have the last name Chao, they can assume that they are somehow related. It's like a big family! Some people even dedicate a lot of time to study and learn about their family history, so they can know more about where they come from and who their ancestors were.