python breaking if statement inside for loop

Try this:

def pTurn(CampLoc, AICampLoc, score, yourHits, cHits):
    if yourHits < 5:
    #^This line ident is probably the offending line. ;)
        hGuess = int(raw_input("Enter a co-ordinate to air-strike: "))
        print "Air-striking co-ordinate: %d" % hGuess
        for cSpot in AICampLoc:
            if hGuess == cSpot:
                yConfirMsg = "Kill confirmed!!"
                yourHits += 1
                score += 100
                AICampLoc.remove(hGuess)
                break
            else:
                yConfirMsg= "No casualties"
                score = score #You may want to fix this, since the logic doesn't make sense
                yourHits = yourHits #Fix this line as well. This is variable value assignment to the same variable.

If this doesn't work, another thing to consider is that you may be inadvertently mixing tabs and whitespace when you indent the leading spaces for your code. If so, convert all the tabs to spaces.

And, regarding the notes cited. Perhaps you meant to return those values? If so, you need to fix those logic errors.

UPDATE:

If you only have to break once and only once, then you should replace break with return.

If not, then you should capture the location, continue loop execution, and do whatever you have to do with that information.

    #...
    values = {}
    all_values = []

    for cSpot in AICampLoc:
        if hGuess == cSpot:
            yConfirMsg = "Kill confirmed!!"
            yourHits += 1
            score += 100
            AICampLoc.remove(hGuess)

            values['message'] = yConfirMsg
            values['hits'] = yourHits
            values['score'] = score
            values['camploc'] = AICampLoc

            all_values.append(values)

        else:
            yConfirMsg= "No casualties"
            #...

You are missing an indent, as the other answer states, but also, you have a bunch of code that isn't needed. Your code can be simplified to this:

def pTurn(CampLoc, AICampLoc, score, yourHits, cHits):
    if yourHits < 5:
        hGuess = int(raw_input("Enter a co-ordinate to air-strike: "))
        print "Air-striking co-ordinate: %d" % hGuess
        yConfirMsg= "No casualties"
        for cSpot in AICampLoc:
            if hGuess == cSpot:
                yConfirMsg = "Kill confirmed!!"
                yourHits += 1
                score += 100
                AICampLoc.remove(hGuess)
                break