Young created all three goals for Watford, sending in a well-flighted corner for Jay DeMerit to head their opener midway through the second half.
Young then fed Marlon King who fired into the net via a deflection off Jody Craddock before Paul Devlin headed home from a corner from close range.
A 10-yard strike from Seol Ki-Hyeon was no consolation for Wolves, who dominated for long periods.
Wolves manager Glenn Hoddle:
"We are killing ourselves by not taking chances. You can imagine what went on in the dressing room afterwards.
"We are beating ourselves, because we are not punishing teams. We should have been two or three goals up at half-time.
"It's sickening to lose the game, but if you don't defend corners properly then you can expect to be punished."
Watford: Foster, Doyley, DeMerit, Carlisle, Chambers, Devlin (Bangura 88), Spring, Mahon, Young, King, Henderson (McNamee 66).
Subs Not Used: Chamberlain, Stewart, Mackay.
Goals: DeMerit 69, King 77, Devlin 80.
Wolves: Oakes, Edwards, Lescott, Craddock, Naylor, Gyepes (Ross 45), Kennedy, Anderton (Seol 78), Huddlestone, Clarke, Miller (Olofinjana 83).
Subs Not Used: Cameron, Postma.
Goals: Seol 90.
Ref: C Webster (Tyne & Wear).