Building upon the spin-1/2 Kitaev model on a honeycomb lattice, the Yao-Lee spin-orbital model provides exactly solvable quantum spin liquids with potentially better stability against perturbations due to the additional degree of freedom. Recently, the microscopic mechanism underlying the Yao-Lee interaction in honeycomb materials has been uncovered, leading to an extended Kitaev-Yao-Lee spin-orbital model when the celebrated Kugel-Khomskii interaction is included. Numerical studies of this model have identified various disordered phases, including a broad region of the nematic phase that is reminiscent of a spin-orbital liquid. Here, we investigate the origin and stability of this nematic phase via thermal and quantum fluctuations using classical Monte Carlo simulations and a generalized spin wave theory appropriate for the spin-orbital model. We demonstrate that the additional spin-orbital degree of freedom gives rise to strong thermal and quantum fluctuations in spin-orbital models, providing insight into the emergence of disordered phases.