There is nothing wrong with your yorkies hair. He is a soft, cotton coat. They tend to be darker in color. He looks just like my Morgan and like DvlshAngel985's Kaji. Morgan is going to be 5 this april and her head is still 3-4 different colors.
check out these pictures from when she was around 1 year old:
This is Morgan and her biological brother Oliver. You can see how different their coats are. Oliver is a nice gold color on his head and the hair is obviously silkier. Morgan is a dustier, more muted color. Her head is tan, grey, and black (and it still is today) and is obviously thicker and poofier.
These two pictures are her when she was 10 months and on her 1st birthday.