Jota was killed alongside brother Andre Silva a fortnight ago in a tragic car accident in Spain.
He scored 44 goals in 131 appearances for Wolves before leaving for Liverpool five years ago.
"There is such a feeling of sadness and disbelief around this awful tragedy that we wanted to make this tribute of our own as soon as we could," said Wolves Hall of Fame chairman and club vice-president John Richards.
"Like everyone else, we've been stunned by events, and we remember what a wonderful player Diogo was for Wolves during that unforgettable promotion season under (manager) Nuno (Espirito Santo) and our early years back in the Premier League.
"So many fans across the game - especially in Portugal after he helped them win the Nations League this summer - are feeling his loss deeply. We saw no reason to delay this decision.
"We hope it will bring a little comfort to those who were close to Diogo and Andre, and we trust Wolves supporters will understand that this gesture is made with real love and admiration, and also fully justified."