https://9to5mac.com/2020/03/08/apple-watch-blood-oxygen-satu...
At the time they reported that there were mentions of it in an iOS 14 leak, but it wasn't clear if it would be a software update to existing watches (somehow able to detect it with existing heartrate hardware) or in a watch hardware revision. Since it wasn't mentioned in the watchOS news at WWDC, looks like it'll be new hardware.
Either that or the code they found in iOS 14 was related to the health app and support for 3rd party oximiters, but that's not how the 9to5 post frames it so best I can do is take their word for it.