Yes, Audio Radar works with headsets.
You can use Audio Radar with headphones or other external audio systems. If you use a corded headset, there is a 3.5mm audio jack. This allows for corded listening, but you won't be able to talk through the headset. Audio Radar takes the audio input directly from your gaming console or PC, not from the output device such as speakers or soundbar. It analyses this audio input to create visual cues on the LED lightbars. You can still use other external audio systems for your audio output without affecting the performance of Audio Radar. Each system has different requirements to make this happen, so please check out the articles below:
PC (requires Voicemeeter Banana): How to Setup Voicemeeter Settings
Xbox: How to Setup Audio Radar with Xbox
PlayStation (More limitations): How to Setup Audio Radar with PlayStation 5
Remember, Audio Radar is not a replacement for your existing audio setup but an enhancement. Whether you're using headphones, a soundbar, or a full surround sound speaker system, Audio Radar can complement your gaming experience by visually reinforcing audio cues.
Check out these other articles:
Which Voicemeeter is right for me?
How to Separate Discord from Audio Radar using Voicemeeter Banana
Can I use Audio Radar with a soundbar?