Yes you can checkin/checkout Excel files using TFS but since Excel files are in a binary format (unless they are pure .CSV
files) you will get limited usefulness trying to compare versions.
You would most likely use TFS Power Tools or similar Windows Shell Extension to commit your file when you are done editing it. You can also add your Excel document to a Solution/Project in Visual Studio and version control it using Visual Studio, but attempting to open the file would result in Excel launching.
Because Excel files are binary files Comparison would be manual processes where a human visually compares documents side by side using two instance of Excel. Conflict Resolution would require the same process, with the added step of a human modifying one excel document or another. In both cases you would want to make a copy of the file and edit the copy, then either copy it over or manually transpose each edit.
You could possibly try Excel 2016 to save in Open Document Format and/or CSV and then use regular diff tools for comparison, merge and conflict resolution (this would be true for any Version Control System.) However, this would not be an ideal workflow for the typical office employee (maybe okay for programmers.)
Services like Box, Google Drive or Sharepoint Online currently provide a better solution to these problems, and if you want to retain docs in your source control system you can regularly commit whatever you have stored in a purpose-built system.