Density functional theory (DFT) calculations have been conducted to elucidate the detailed mechanisms of yttrium-catalyzed C-H polyaddition of 1,4-dimethoxybenzene (DMB) to 1,4-divinylbenzene (DVB). It was computationally determined that DMB not only serves as a substrate but also performs a crucial role as a ligand, stabilizing the catalytically active species and promoting alkene insertion. Side pathways involving Cβ-H activation and C═C continuous insertion were excluded due to steric and electronic factors, respectively, explaining why the reaction occurred efficiently and selectively to give perfectly alternating DMB-DVB polymers. Interestingly, the theoretical prediction of the reactivity of N,N-dimethyl-1,4-phenylenediamine and 2,2'-biethyl-4,4'-bipyridine reveals significant differences in the coordination effects of these substrates, leading to distinct mechanisms, primarily influenced by their steric effects. These findings shed new light on the previously overlooked role of substrate ligand effects in rare-earth-catalyzed step-growth copolymerization reactions.