Understanding high-temperature superconductivity requires a prior knowledge of the nature of the enigmatic pseudogap metallic state, out of which the superconducting state condenses. In addition to the electronic orders involving charge degrees of freedoms recently reported inside the pseudogap state, a magnetic intra-unit-cell (IUC) order was discovered in various cuprates to set in just at the pseudogap temperature, T*. In nearly optimally doped YBa$_2$Cu$_3$O$_{6.85}$, polarized neutron scattering measurements, carried out on two different spectrometers, reveal new features. The order is made of finite size planar domains, hardly correlated along the c-axis. At high temperature, only the out-of-plane magnetic components correlate, revealing a strong Ising anistropy, as originally predicted in the loop current model. Below T*, a correlated in-plane response develops, giving rise the apparent tilt of the magnetic moment at low temperature. The discovery of these two regimes put stringent constraints on the intrinsict nature of IUC order, tightly bound to the pseudogap physics.