diff --git a/dvc/utils/strictyaml.py b/dvc/utils/strictyaml.py
index 50926c65c..9a9a53013 100644
--- a/dvc/utils/strictyaml.py
+++ b/dvc/utils/strictyaml.py
@@ -20,6 +20,7 @@ from dvc.utils.serialize import (
     parse_yaml,
     parse_yaml_for_update,
 )
+from dvc_objects.fs.local import LocalFileSystem
 
 if TYPE_CHECKING:
     from rich.syntax import Syntax
@@ -34,15 +35,24 @@ _T = TypeVar("_T")
 merge_conflict_marker = re.compile("^([<=>]{7}) .*$", re.MULTILINE)
 
 
-def make_relpath(path: str) -> str:
-    import os
+def make_relpath(fs_path: str, fs: "Optional[FileSystem]" = None) -> str:
+    from os import curdir, pardir, sep
 
     from dvc.utils import relpath
 
-    rel = relpath(path)
-    prefix = ""
-    if not rel.startswith(".."):
-        prefix = "./" if os.name == "posix" else ".\\"
+    if not fs_path:
+        return fs_path
+
+    if fs and not isinstance(fs, LocalFileSystem):
+        rel = fs.relpath(fs_path).replace(fs.sep, sep)
+    else:
+        rel = relpath(fs_path)
+
+    if rel.startswith(sep):
+        # if it is an absolute path, return as it is.
+        # This can happen on Windows when we are on a different drive.
+        return rel
+    prefix = curdir + sep if not rel.startswith(pardir) else ""
     return prefix + rel
 
 
@@ -77,14 +87,14 @@ class YAMLSyntaxError(PrettyDvcException, YAMLFileCorruptedError):
         exc: Exception,
         rev: Optional[str] = None,
     ) -> None:
-        self.path: str = path
         self.yaml_text: str = yaml_text
         self.exc: Exception = exc
 
         merge_conflicts = merge_conflict_marker.search(self.yaml_text)
         self.hint = " (possible merge conflicts)" if merge_conflicts else ""
         self.rev: Optional[str] = rev
-        super().__init__(self.path)
+        super().__init__(path)
+        self.relpath: str = path
 
     def __pretty_exc__(self, **kwargs: Any) -> None:  # noqa: C901
         from ruamel.yaml.error import MarkedYAMLError
@@ -134,9 +144,8 @@ class YAMLSyntaxError(PrettyDvcException, YAMLFileCorruptedError):
             # if there are no other outputs
             lines.insert(0, "")
 
-        rel = make_relpath(self.path)
         rev_msg = f" in revision '{self.rev[:7]}'" if self.rev else ""
-        msg_fmt = f"'{rel}' is invalid{self.hint}{rev_msg}."
+        msg_fmt = f"'{self.relpath}' is invalid{self.hint}{rev_msg}."
         lines.insert(0, _prepare_message(msg_fmt))
         for line in lines:
             ui.error_write(line, styled=True)
@@ -198,10 +207,9 @@ class YAMLValidationError(PrettyDvcException):
         self.text = text or ""
         self.exc = exc
 
-        rel = make_relpath(path) if path else ""
         self.path = path or ""
 
-        message = f"'{rel}' validation failed"
+        message = f"'{self.path}' validation failed"
         message += f" in revision '{rev[:7]}'" if rev else ""
         if len(self.exc.errors) > 1:
             message += f": {len(self.exc.errors)} errors"
@@ -288,10 +296,12 @@ def load(
         raise EncodingError(path, encoding) from exc
     except YAMLFileCorruptedError as exc:
         cause = exc.__cause__
-        raise YAMLSyntaxError(path, text, exc, rev=rev) from cause
+        relpath = make_relpath(path, fs)
+        raise YAMLSyntaxError(relpath, text, exc, rev=rev) from cause
 
     if schema:
+        relpath = make_relpath(path, fs)
         # not returning validated data, as it may remove
         # details from CommentedMap that we get from roundtrip parser
-        validate(data, schema, text=text, path=path, rev=rev)
+        validate(data, schema, text=text, path=relpath, rev=rev)
     return data, text
diff --git a/tests/func/utils/test_strict_yaml.py b/tests/func/utils/test_strict_yaml.py
index 7aba6c44c..648745719 100644
--- a/tests/func/utils/test_strict_yaml.py
+++ b/tests/func/utils/test_strict_yaml.py
@@ -1,4 +1,4 @@
-import os
+from os import curdir, pardir, sep
 
 import pytest
 from ruamel.yaml import __with_libyaml__ as ruamel_clib
@@ -372,18 +372,22 @@ def test_on_revision(
     assert expected.format(short_rev=scm.get_rev()[:7]) in err
 
 
-def test_make_relpath(tmp_dir, monkeypatch):
+def test_make_relpath(tmp_dir, dvc, scm, monkeypatch):
     from dvc.utils.strictyaml import make_relpath
 
+    gitfs = scm.get_fs("HEAD")
     path = tmp_dir / "dvc.yaml"
-    expected_path = "./dvc.yaml" if os.name == "posix" else ".\\dvc.yaml"
+    expected_path = curdir + sep + "dvc.yaml"
     assert make_relpath(path) == expected_path
+    assert make_relpath("/dvc.yaml", gitfs) == expected_path
 
     (tmp_dir / "dir").mkdir(exist_ok=True)
     monkeypatch.chdir("dir")
+    gitfs.chdir("/dir")
 
-    expected_path = "../dvc.yaml" if os.name == "posix" else "..\\dvc.yaml"
+    expected_path = pardir + sep + "dvc.yaml"
     assert make_relpath(path) == expected_path
+    assert make_relpath("/dvc.yaml", gitfs) == expected_path
 
 
 def test_fallback_exception_message(tmp_dir, dvc, mocker, caplog):