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In this paper, we propose to approach the capacity limit for channels with fast phase variation by using a serial concatenation scheme with an outer turbo encoder and an inner block modulator. A distinct feature of the proposed transmission scheme is that coded symbols from adjacent codewords are interleaved into the same input vectors of the block modulator. At the receiver, we not only perform the iterative noncoherent demodulation and decoding algorithm, but also exchange extrinsic information between adjacent codewords due to the codeword interleaved structure. It is shown through the extrinsic information transfer (EXIT) chart that the resultant block demodulator and channel decoder can match well with each other, and can achieve a near-capacity performance.