Dielectric measurements are used to characterize magnetic phase transitions in the doped ferroelectric oxides Ho1-xYxMnO3 (x=0.4). The focus of this experiment is on the effects of the magnetic field direction on the reentrant T-B-θ phase diagram below the Néel temperature. The Ho sublattice plays a major role in all magnetic phase transitions for Y doping (x=0.4), consistent with previous results (x=0,0.6,0.8). Two successive Mn spin rotations in the ab plane in the antiferromagnetic state are driven by the interaction with the Ho subsystem, although the Ho ordering peak in data is not pronounced. The dielectric response is a very sensitive probe for fine analysis of all aspects of spin-spin interactions in diluted Ho1-xYxMnO3. The magnetic field anisotropy study is an important step towards the understanding of magnetic and electric phase competition in the diluted 4f system by the nonmagnetic yttrium (Y) ion.