Yates, 19, spent time on loan at both National League club Barrow and League One side Shrewsbury last term.
He is the second Forest midfielder to join Kevin Nolan's Magpies, with Jorge Grant making the move last month.
Yates is the sixth Notts addition in five days, with ex-Bolton defender Nicky Hunt also among arrivals ahead of Saturday's season opener at Coventry.
Find all the latest football transfers on our dedicated page.
Notts County have signed midfielder Ryan Yates on a season-long loan from neighbours Nottingham Forest.