We study the critical properties of the Kitaev-Heisenberg (KH) model on the honeycomb lattice at finite temperatures that might describe the physics of the quasi two-dimensional (2D) compounds, Na2IrO3 and Li2IrO3. The model undergoes two phase transitions as a function of temperature. At low temperature, thermal fluctuations induce magnetic long-range order by the order-by-disorder mechanism. This magnetically ordered state with a spontaneously broken Z6 symmetry persists up to a certain critical temperature. We find that there is an intermediate phase between the low-temperature, ordered phase and the high-temperature, disordered phase. Finite-sized scaling analysis suggests that the intermediate phase is a critical Kosterlitz-Thouless (KT) phase with continuously variable exponents. We argue that the intermediate phase has been observed above the low-temperature, magnetically ordered phase in Na2IrO3, and also likely exists in Li2IrO3.Introduction. The Ir-based transition metal oxides, in which the orbital degeneracy is accompanied by a strong relativistic spin-orbit coupling (SOC), have recently attracted a lot of theoretical and experimental attention [1][2][3][4][5][6][7][8]. This is because the strong SOC creates a different, and frequently novel, set of magnetic and orbital states due to the unusual anisotropic exchange interactions between localized moments which are in turn determined by the combination of spin and lattice symmetries. The spin-orbital models that describe the low-energy physics of iridium systems often include anisotropic terms that do not reduce to the conventional easy-plane and easy-axis anisotropies because they involve the products of different components of multiple spin operators. These terms are responsible for exotic Mott-insulating states [3], topological insulators [10,11], spin-orbital liquid states [1, 2], and non-trivial long-range magnetic orders [3,4,6].A prominent example of such an anisotropic spinorbital model is the KH model on the honeycomb lattice [12,13] which likely describes the low-energy physics of the quasi 2D compounds, Na 2 IrO 3 and Li 2 IrO 3 . In these compounds, Ir 4+ ions are in a low spin 5d 5 configuration and form weakly coupled hexagonal layers [4,6,8]. Due to strong SOC, the atomic ground state is a doublet where the spin and orbital angular momenta of Ir 4+ ions are coupled into J eff = 1/2. It was suggested [12,13] that the interactions between these effective moments can be described by a spin Hamiltonian containing two competing nearest neighbor (NN) interactions: an isotropic antiferromagnetic (AF) Heisenberg exchange interaction and a highly anisotropic ferromagnetic (FM) Kitaev exchange interaction [14]. This competition can be described with the parameter, 0 ≤ α ≤ 1, which sets the relative strength of these two interactions. At α = 0, the coupling corresponds to the AF Heisenberg interaction, and at α = 1, it corresponds to the Kitaev interaction.This model immediately attracted a lot of attention; several theoretical studies were publis...