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In the past I wanted to use auto unlock via TPM, however it seems quite complicated to set up and the Arch wiki advises against it anyway, so I just enter the password during boot.
The one improvement I would like to make here is to have a nicer input (visually) like Fedora but I'm not sure how this is done and how I could replicate that on Arch.
If I understand your query correctly, Fedora uses a Plymouth theme called
bgrtwhich displays the OEM logo and asks for the key in a nicer input. Try setting your Plymouth theme to bgrtThank you! I had no clue what to even search for but your comment pointed me in the right direction.
I spent the past hour setting this up and it almost works, but for some reason when I boot I only see something like "Loading initramfs" and then just a black screen and nothing happens. If I mash the escape key before I reach the black screen then plymouth works and I see the logo and LUKS password prompt.
Check out Archwiki plymouth , in the installation section, make sure that you have silent boot as that's what usually blocks plymouth from displaying.