The Minstermen rarely tested Torquay keeper Michael Poke with Alex Rodman going close twice and Mills says his side need to start taking their chances in front of goal.
"I thought we were poor in a sense today, I didn't see much belief out there," he said after losing 2-0 to the Gulls at Bootham Crescent on Saturday.
"I don't think we went out and did our jobs good enough today and I think we looked scared at times.
"Even though we lost to Wimbledon a couple of weeks ago we gave it a go and today we looked scared to have the ball and a bit desperate from the word go.
"We lost again today having said that we probably had more possession but we've given away two silly goals, two poor goals in my mind, but we've had chances and it's a recipe for disaster when you give away sloppy goals and you can't take your chances.
"We've had some good times over the past 12 months and now we're having some bad times and it's about how you come through that as a group. We'll come through it together and we'll work hard."