The 19-year-old defender, who worked his way through the Easter Road academy from the age of seven, spent last season on loan at League Two side Stenhousemuir where he made 18 appearances for the Warriors.
His departure comes as something of a surprise having signed a new one-year contract extension in April until the summer of 2022.
The newly-promoted Spiders, who recently appointed former Hibs coach Grant Murray as assistant manager to Laurie Ellis, were keen to add 'Scholesy' to their ranks for their bid to secure back-to-back promotions this coming term.
“Callum is a very welcome addition to our squad at Queen’s Park,” said Ellis.
"He has had a great period of development at Hibs and now relishes the chance to be part of a first team squad and the competition that brings. He is a fine young man and has a great appetite to work.”
Yeats admitted it took a lot for him to leave Hibs having spent more than a decade with the club.
After meeting his new Queen’s Park team mates, Yeats said: “I’m delighted to have joined the club and I’m really looking forward to the challenges that lie ahead.
"I’ve spent the last 12 years at Hibs, so it was going to take quite a lot for me to leave the club. I really feel this is the right move for me and I’m very happy to have joined an exciting and ambitious club. I can’t wait to get started and I’m really looking forward to the season ahead.”
Hibs sporting director Graeme Mathie passed on his best wishes to the young left back.
“Callum has been at the Hibernian Academy from a young age and has always shown a great desire to be a professional player throughout his journey," he said.
"He impressed in both his loan spells at Civil Service Strollers in the Lowland League and also at Stenhousemuir in League Two and to join an ambitious League One club is a great next step for him.
"Everyone at Hibernian wishes him every success for his career going forward and thanks him for at his efforts throughout his time at the club.”