Microwave absorption materials have attracted attention due to their extensive applications in different fields. Herein, ytterbium-doped BaCo2 W-type hexaferrite nanocrystallites with a nominal composition of BaCo2YbxFe16−xO27 (x = 0.00, 0.03, 0.06, 0.09, and 0.12) were synthesized via the sol–gel method, and their physicochemical and dielectric characteristics were estimated. XRD plots revealed the pure phase structure of each prepared hexaferrite sample. The lattice constant and unit cell volume were affected by changes in the Yb concentration. The crystallite size was measured by the Debye–Scherrer formula, revealing intense crystals typically in the 18–33 nm range. FTIR spectroscopy showed multiple absorption bands from 430 to 3000 cm−1, and Raman spectroscopy revealed multiple peaks between 200 and 1000 cm−1, displaying the allocated polyhedra and symmetry. XPS spectroscopy confirmed the existence of all metal ions in the required valence state. The dielectric measurements were evaluated at frequencies from 1 to 6 GHz for all the synthesized compositions, and the material behavior was explained using the Maxwell–Wagner and Koop theories. The conduction mechanism in the hexagonal ferrites was assessed using Cole–Cole analysis. Reflection loss measurements were also conducted: the samples at x = 0.03 and x = 0.12 yielded minimal reflection losses of −60.06 and −51.69 dB at 5.5 GHz, respectively. The results demonstrate the suitability of the samples for use in microwave and high-frequency absorption applications.