  Here, we study YbI$_3$, a quasi-2D layered material with Yb atoms arranged on
an ideal honeycomb network of edge-sharing YbI$_6$ octahedra, analogous to the
low-temperature phase of $\alpha-$RuCl$_3$. High quality single crystals of
YbI$_3$ are grown from Yb and I as starting precursors, using the vapor
transport technique. The grown crystals are characterized by single crystal
x-ray diffraction, Raman spectroscopy, magnetization, and heat capacity probes.
The crystal-field split ground state of Yb$^{3+}$ in \Yb~ is a well-isolated
Kramers doublet with an effective moment $\rm J_{eff} = 1/2$. Upon cooling, the
low-temperature heat capacity of \Yb~ reveals a broad peak at $\rm T_1 =
0.95$~K due to short-range ordering of the Yb moments, followed by a sharp peak
at $\rm T_2 = T_N = 0.6$~K due to long-range ordering. The magnetic behavior is
found to be weakly anisotropic with $\chi^\parallel > \chi^\perp$, where
$\chi^\parallel$ and $\chi^\perp$ refers to the in-plane ($H \parallel ab$) and
out-of-plane ($H \perp ab$) susceptibilities. The 2~K isothermal magnetization
saturates at $\rm \approx~1.5~\mu_B/Yb^{3+}$ (in-plane) and $\rm
\approx~1~\mu_B/Yb^{3+}$ (out-of-plane), suggesting the anisotropy to be
easy-plane type. Low-temperature heat capacity, well below T$_N$, is found to
vary as T$^\alpha$ with $\alpha~\approx~2.5$, indicating a possible
unconventional magnetic ground state for YbI$_3$.
