Sylvan Ebanks-Blake's first Premier League goal of the season, from the spot, hauled Wolves level - after Gabriel Agbonlahor had opened the scoring in the 79th minute - and 1-1 was how it stayed.
O'Neill accepted Steve Sidwell's foul on Michael Kightly deserved a penalty but, unlike his opposite number Mick McCarthy, was less convinced Wolves had an even better case when their claims for a spot-kick went unanswered in the first half, when Richard Dunne appeared to pull Kevin Doyle back under pressure in the 18-yard box.
"It is a penalty. The correct decision was made," O'Neill told Sky Sports 1.
The Villa boss conceded he had a poor view of the first-half incident but suggested: "It looked to be just a tussle."
Of more concern to O'Neill, however, was Villa's off-colour showing - especially before the break.
"I don't think any of that would deflect from the fact that we played pretty poorly in the first half," he said.
"Considering the performances we put in against Manchester City and Chelsea (recently), it was a bit of a disappointment.
"We improved significantly in the second half - which was not that difficult."
McCarthy is prepared to let the matter lie over his team's first-half hopes for a penalty - seeing as they got one in the end.
"The one in the first half was a penalty, stonewall - but at least he [referee Peter Walton] has given us the second one."
As for the result, he added: "Having gone one down, it was a great reaction from us to get back into it and get a point out of it."
Ebanks-Blake was similarly satisfied with the outcome.
"It is always a relief to score - I love scoring goals," he said.
"It's great to get off the mark, but more importantly the team played well - and a point was the least we deserved.
"They are good defenders, but I thought we won our fair share and battled. We gave them some problems."