Yorke, who left Villa for Manchester United in his prime and went on to win countless club trophies, spoke about the England striker.
Watkins enjoyed an outstanding season last term, but has taken time to get going so far this term.
"I see a lot of myself in Ollie Watkins," Yorke told FourFourTwo.
"He’s a creator, a dribbler and a finisher, a bit like I was back in the day. You saw from his number of goals and assists last term that he has a little bit of everything.
"His work ethic is also admirable. He’s a top, top player. You don’t get to that level, scoring that many goals and contributing creatively, unless you’re a fantastic footballer.
"It took him a little while to reach those levels, but now he is established. He’s one of those players you can pick again and again, every week, because his level is always high and he has shown that he can be trusted consistently. That’s what the top players do.
"Where does Watkins go from here? Can he produce that again this season, while also performing in the Champions League?"