The 23-year-old, who has secured a three-year deal, will officially become an Owls player on July 1. He is the fourth new player to join the Owls this summer following the arrivals of Chris Sedgwick, Jon Otsemobor and Paul Heffernan.
Wednesday manager Alan Irvine said: "I'm delighted to bring Daniel to the club. I've been aware of him since he broke through a few years ago at Wolves.
"He's recently been out on loan and played a lot of games in League One, so he's another player who knows what the division is all about. He's quick, very athletic and has an excellent left foot.
"Daniel is a player with potential to really develop. I've spoken to him about the fact that we are a coaching club and one that will help develop young players."
Jones, a left-back who can also play in midfield, rose through the ranks at Wolves, where he made 11 senior appearances.