useOpenAndCloseFocus

const Overlay = ({returnFocusRef, initialFocusRef, children}) => {
  const containerRef = React.useRef(null)
  useOpenAndCloseFocus({containerRef, returnFocusRef, initialFocusRef})
  return (
    <Box height="200px" ref={containerRef}>
      {children}
    </Box>
  )
}

function Component() {
  const returnFocusRef = React.useRef(null)
  const initialFocusRef = React.useRef(null)
  const [isOpen, setIsOpen] = React.useState(false)
  return (
    <Box sx={{'*': {':focus': {backgroundColor: 'red.5'}}}}>
      <Button ref={returnFocusRef} onClick={() => setIsOpen(!isOpen)}>
        toggle
      </Button>
      {isOpen && (
        <Overlay returnFocusRef={returnFocusRef} initialFocusRef={initialFocusRef}>
          <Button>Button One</Button>
          <Button ref={initialFocusRef}>Button Two</Button>
        </Overlay>
      )}
    </Box>
  )
}

render(<Component />)