I'm attempting to create a homebrewed race for an upcoming campaign and I cant seem to figure out the racial trait system, ideally I would want to have the race have two traits that it can choose to upgrade one of them as it gets higher in level.

I see that there's "trait options" and "prerequisite racial trait option" listen but I cant get anything to appear. what I'm trying to make happen it a trait that would be able to become stronger every few level milestones, any help on this issue would be super appreciated.

I explained how options work in-depth in the following thread:

https://www.dndbeyond.com/forums/dungeons-dragons-discussion/homebrew-house-rules/67361-subclass-help#c4

I'm not sure what I'm doing wrong but what you sent me is for class options work and I'm doing racial trait options, and i don't see a "Has options" checkbox anywhere, I have the prerequisite levels setup as they should be but when I attempt to select a prerequisite racial trait option just a "-" appears and nothing else.

Yes, that is for classes, but race options are the same except for that checkbox.

The prerequisite traits have to be from a separate racial grate, not the same one you are working in. So the options from Trait A can be the prerequisites for Traits B-ZZ.