yield() method pauses the currently executing thread temporarily for giving a chance to the remaining waiting threads of the same priority to execute. If there is no waiting thread or all the waiting threads have a lower priority then the same thread will continue its execution. The yielded thread when it will get the chance for execution is decided by the thread scheduler whose behavior is vendor dependent.
But in case of sleep() it is not compulsory that next thread should have higher priority but lower priority then the thread which have been sent to sleep. In case of sleep next thread in the queue will run which ever has higher priority in the queue.