I really wasn't sure this was worth reading when I started - the whole premise just seemed like it was going to be dumb. But it's actually really amazingly good, with excellent and very enjoyable character development, believable relationships, and an excellent mix of hijinks and serious emotional content (yes, serious emotional content in a story called "Miss Kobayashi's Dragon Maid")
This is yuri in the sense that people want it to be yuri and it has some yuribait fanservice moments. It's not actually yuri at all, but it's somehow close enough that this has kept the tag despite that.