I have seen several yorkies without a docked tail and they all had long tails that curl up over the body. So yours is docked, it just wasn't docked as short as some. I have seen some docked to where there was very little tail at all to one that was a couple of inches long. As far as the hair goes it on depends on how the tail was docked. All lot a vets do it differently, you have to make the right cut with the right amount of skin. If it is not done properly, then they can have no hair growth on the end of the tail,thats what vets have told me. This is the case with my cocker, she has no hair on the end of her tail. My yorkies all have nice docked tails and with no hair missing.