I don't use Yahoo for anything so I have no idea about a 'legal' fix.
However, it might be a good idea to contact Yahoo as to the validity of that alert.
1. If you
don't have a password labeled "Imported Private Key" (or Yahoo) in Keychain, entering your local user account password will not work.
2. The fine print is asking you to enter the password for your MacOS local user account. I seriously doubt you would have used that important password as a "key"/password for anything else. Ever!
