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The first generation of multiqubit quantum technologies will consist of noisy, intermediate-scale devices for which active error correction remains out of reach. To exploit such devices, it is thus imperative to use passive error protection that meets a careful trade-off between noise protection and resource overhead. Here, we experimentally demonstrate that single-qubit encoding can significantly enhance the robustness of entanglement and coherence of four-qubit graph states against local noise with a preferred direction. In particular, we explicitly show that local encoding provides a significant practical advantage for phase estimation in noisy environments. This demonstrates the efficacy of local unitary encoding under realistic conditions, with potential applications in multiqubit quantum technologies for metrology, multipartite secrecy, and error correction.