The use of Frank Oz and his puppets to populate the planet of Dagobah and bring Yoda to life was another practical old-school technique that arguably gave the Jedi master more gravitas than the somersaulting CGI goblin of the prequels.
Much to learn they still have. Watch this again:-
https://www.youtube.com/watch?v=HMUKGTkiWik
Yoda was popular as a character not because of his looks alone, but because much of what he says to Luke is actually both wise, and said to the viewer as much as the character. When Luke gives up because something is too much of a struggle for him to keep trying, he decides he can't do it and then goes and sulks, that's something human relatable as is the lesson that it could be done if he hadn't given up.
Not for nothing are quotes from Yoda such as "Luke: "I don't believe it!" Yoda: "And *THAT* is why you fail." found in motivational courses and quote books.