When you wrap and turn, you're working short rows. Work to the stitch indicated in the pattern. Slip the next stitch, bring the yarn forward and slip the stitch back. That wraps the stitch to prevent a hole. This is the end of the row. At this point you turn the work and work the next set of directions. There are videos on how to do it above, as well.
When you've wrapped a stitch, there is a loop around it. When you get to it again, you lift the yarn that is wrapped up onto the needle and knit it together with the stitch.
For yo's, if you are knitting, you only have to bring the yarn forward and knit the next stitch. This creates an extra stitch that you will work on the next row. It doesn't look normal, and it creates a planned eyelet.
I hope this helps.
Also, if you Google scroll lace scarf ysolda you will find a link to some errata for the patterns.