Lithium yttrium silicate glasses mixed with different concentrations of Fe2O3 of the composition (40−x) Li2O–10Y2O3–50SiO2: x Fe2O3, with x=0.3, 0.5, 0.8, 1.0, 1.2 and 1.5 (all in mol%) were synthesized. Electrical and dielectric properties including dielectric constant, ε′(ω), loss, tan δ, ac conductivity, σac, impedance spectra as well as electric moduli, M(ω), over a wide continuous frequency range of 40Hz to 106Hz and in the low temperature range 100 to 360K were measured as a function of the concentration of Fe2O3. The dc conductivity is also evaluated in the temperature range 100 … 360K. The temperature and frequency dispersions of dielectric constant as well as dielectric loss have been analyzed using space charge polarization model. The ac and dc conductivities have exhibited increasing trend with increasing Fe2O3 content beyond 0.5mol%, whereas the activation energy for the conductivity demonstrated decreasing tendency in this dopant concentration range. Both quantum mechanical tunneling (QMT) and correlated barrier hopping models (CBH) were used for clarification of ac conductivity origin and the corresponding analysis has indicated that CBH model is more appropriate for this glass system. For the better understanding of relaxation dynamics of the electrical properties we have drawn the scaling plots for ac conductivity and also electric moduli. The plots indicated that the relaxation dynamics is independent on temperature but depends on concentration of Fe2O3. The dc conductivity is analyzed using small polaron hoping model. The increase of conductivity with the concentration of Fe2O3 beyond 0.5mol% is explained in terms of variations in the redox ratio of iron ions in the glass network. The results were further analyzed quantitatively with the support of experimental data from IR, optical absorption and ESR spectral studies. The overall analysis has indicated that Li2O–Y2O3–SiO2 glasses containing more than 0.5mol% of Fe2O3 are more suitable for achieving good electrical conductivity in these glasses.