Have you given him a bath yet? Yorkies should be bathed more frequently than standard dogs since they have hair not fur. I could be that his hair is full of smells from the home he came from that are triggering both of you. Make sure you use a good shampoo without fragrance (since that can trigger allergies/asthma) and blow him dry. He should be bathed every week.
I would definitely start by bathing him and see if that reduces anything. Also watch out for topical flea treatments. The chemcial smell can be bothersome for those with allergies/asthma as well.
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