I don't think you have any options on the format of a query's built-in
parameter dialog, but you can use an unbound pop-up form for parameter
entry. The text box on that form could have the password input mask. If
you are opening a report you can have the command button open the password
form instead. A command button can check the password. If it is OK, go
ahead and open the form. Hide the pop-up form rather than closing it. The
Criteria row in the query would be something like:
Forms!frmPswd!txtPswd
where frmPswd is the name of the pop-up form and txtPswd is the text box on
the form.
In the report's Close event you can include code to close frmPswd.
As an aside, this seems rather a curious approach. Does the user enter a
password for every record? If so, I guess you have to hope they don't make
a typo.