The Everton full-back opened the scoring at Goodison Park with a perfectly placed free-kick into the bottom corner.
Orel Mangala later doubled the Toffees' lead in an impressive first half for Sean Dyche's side.
However, it was Young's strike which made the veteran defender a Premier League record holder.
As well as being his 50th top-flight goal, at the age of 39 years and 149 days, he is now the oldest player to score from a direct free-kick in the competition's history.
The record had been held for more than two decades by another former England international.
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Stuart Pearce, who's on talkSPORT's books, previously scored a free-kick for West Ham against Arsenal in October 2000 aged 38 years and 180 days.
Meanwhile, Young is also now the fourth oldest scorer in Premier League history.
He overtakes Ryan Giggs to slot behind Thiago Silva, Dean Windass and Teddy Sheringham in the all-time list.
Sheringham is also the only player aged 40 or older to score in the division, with his last goal coming for the Hammers against Portsmouth on Boxing Day in 2006 at 40 years and 268 days old.
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Young's effort against Wolves was just his second since joining Everton in the summer of 2023 and it's his first league goal for the club.
His only previous strike came in the Carabao Cup against Burnley in November 2023.
It got even better for Young and Co after the break as a pair of own goals from Craig Dawson secured a 4-0 victory for the hosts.
The result moves Everton five points clear of the relegation zone in 15th.
Wolves are now three points adrift of safety, though, after second defeat in five days.
Young's record-breaking goal comes in a week where the former Manchester United man learnt he could yet make more history.
Everton have been drawn at home to League One Peterborough in the third round of this season's FA Cup.
Young's teenage son Tyler currently plays for Posh's under-21 side.
The 18-year-old midfielder, who signed from QPR in the summer, has already appeared once for the first-team and been named on the bench several more times.
Reacting to the draw, Young wrote on X: "Wow.......... Dreams Might Come True."
Another goal for Young in next month's tie would also make him the third oldest scorer in this season's competition.