Phase-pure hexagonal and orthorhombic YFeO3 nanopowders are synthesized by low-temperature solid-state reaction along with Zr doping. The obtained powders are characterized by X-ray diffraction, field emission scanning electron microscopy, and physical property measurements. The hexagonal YFeO3 exhibits a narrower optical band gap in comparison to the orthorhombic one, while the orthorhombic YFeO3 presents better magnetic properties. The formation of hexagonal or orthorhombic phase can be effectively controlled by Zr doping. The temperature range of synthesizing the hexagonal YFeO3 nanopowders is increased by ~200 °C due to Zr doping so that they can be easily synthesized, which possesses a finer particle size and a smaller optical band gap, making it favorable for optical applications.