Yue was born with an unknown illness; as an infant, she was still and quiet, as though asleep, and her parents feared she would die. As her condition was critical and the tribe's healers – including Yugoda – could not cure her, Arnook prayed to the Moon Spirit in desperation and placed her in the tribe's Spirit Oasis. The Moon Spirit gifted her with part of its own life force, saving her life and turning her hair white as a side effect. Thus, her parents named her Yue, for the moon. Sometime prior to Team Avatar's arrival at the Northern Water Tribe, it was arranged that Yue would marry a young, egotistical warrior named Hahn who carved a betrothal necklace for her to mark their engagement. However, Yue did not really love him, and consented to the marriage only to stay in line with her people's customs.
Upon arriving at the Northern Water Tribe, Sokka was smitten with her, taken by her beauty at first sight. He first engaged in conversation with the young princess during the joint celebration of the arrival of AvatarAang and Yue's sixteenth birthday. After awkwardly flirting with her, the two soon began to arrange meetings. These included riding on Appa and taking walks together. Although affection budded between the two, Yue was bound in an arranged marriage to Hahn, who had more love for her high status than for Yue herself. He boasted once to Sokka that "she [came] with the most perks". Sokka and Yue came to realize their love for each other, but she could not bear to continue their meetings because they conflicted so strongly with her duty to her tribe. Sokka eventually became angered when Yue insisted that being together was "wrong" and that it was her duty to marry Hahn for her people, to which Sokka replied she was not marrying her people. Both of their feelings persisted, and during AdmiralZhao's siege of the Northern Water Tribe, Sokka was ordered by Arnook to act as Yue's bodyguard.
Yue aided Aang in entering the Spirit World, by leading him and Katara to the Spirit Oasis. Later, when Aang had been captured by Zuko, she accompanied Katara and Sokka as they tracked the two of them down on Appa. Upon their return to the Spirit Oasis, they were confronted by Zhao, who fatally struck the Moon Spirit's mortal form, leaving all waterbenders powerless without the moon's influence. Iroh, who appeared on scene, saw that she had been touched by the Moon Spirit. He reminded Yue of this, and she once again acted dutifully to her tribe, sacrificing herself in order to give back the life that the Moon Spirit had given her as a newborn. Her sacrifice was made against Sokka's wishes, but in the end, the young warrior did not stop her. She placed her hands onto the fish, closed her eyes, and died in Sokka's arms. Her spirit appeared before him shortly after, wearing a long white gown. She whispered, "Goodbye, Sokka. I will always be with you," and the two shared a final kiss before she vanished completely.
Several times following her death, Yue's influence on Sokka became apparent. While in the Foggy Swamp, Sokka, under the swamp's spiritual influence, hallucinated about her. The hallucination of Yue angrily told him that he failed to protect her, reflecting the guilt he felt about her death. During his time in the Si Wong Desert, Sokka directly referred to the moon as Yue while in an intoxicated state brought about by drinking cactus juice.
When Sokka and Suki nearly kissed while crossing the Serpent's Pass, a waning gibbous moon was visible in the background, alluding to Yue's presence, and Sokka's memory of Yue's death prompted him to refuse the kiss, while acting overly protective of Suki. While looking for leads as to disappearances surrounding the full moon, Sokka, in response to Toph's suggestion that the Moon Spirit might be harming people, reacted with anger, declaring that the Moon Spirit was "a gentle, loving lady who rules the skies with compassion and lunar goodness", showing that he still cared deeply for Yue. While with Zuko on the way to the Boiling Rock, Sokka mentioned that "[his] first girlfriend turned into the moon."
Yue was able to provide more tangible assistance to Team Avatar after Aang was struck down by Azula's lightning during the Coup of Ba Sing Se. Yue took it upon herself to meet the Avatar in the Spirit World. She informed him of the damage that had taken place to the Avatar Spirit and explained how to return to his body, further instructing him to seek out the past four Avatars while avoiding Koh, the Face Stealer. She later appeared to Aang once more to encourage him not to lose hope and to continue fighting. Yue subsequently assisted him in his impressive feat of waterbending to get himself to safety, utilizing her powers as the Moon Spirit.
In one of the few accurate scenes from a play that parodied the Avatar's journey, the Yue character was presented as "only woman who's ever taken [Sokka's] mind off food", before floating away on a crescent moon prop. In the audience, Sokka wept as Suki looked on in confusion, as Sokka had never told the full story of Yue. Sokka shushed her, still crying, showing that he still cared for Yue.
Yue was kind, sweet, and gentle. She had a deep sense of loyalty and duty to her tribe. She offered hope to others, and was courageous enough to sacrifice her own life to save the Moon Spirit and the Water Tribe. Along with her compassion, however, Yue also hid a great deal of guilt over being openly affectionate toward Sokka while engaged to Hahn. She was highly spiritual, referencing the Moon and Ocean Spirits several times. It was also hinted that she had a serious side, as she glared at Momo when he tried to catch a sacred koi in the Spirit Oasis.
During the time in which Team Avatar visited the North Pole, Yue did not seem to possess any waterbending ability – not even healing abilities, the only aspect of waterbending taught to women in the Northern Water Tribe – despite being a spiritual person. After offering her life to resurrect the Moon Spirit, she became a waterbender as well. Just after renewing Aang's faith, she helped him to safety by enlarging the wave he had created to carry him to shore.