CBS Sports' Jon Heyman reports that the deal is worth $2.25 million, plus $750,000 in incentives.
Young spent the 2014 season in Baltimore, playing 83 games and hitting .302 with seven home runs and 30 RBIs.
The 29-year-old has played nine years in the majors and has a career .283 average with 107 home runs and a .317 on-base percentage. He has also played for the then-Tampa Bay Devil Rays, Minnesota Twins, Detroit Tigers and Philadelphia Phillies.
The Orioles designated catcher Ryan Lavarnway for assignment to make room for Young on the 40-man roster.
Baltimore went 96-66 last season and won the American League East.
- Molly Geary