Leeds only just avoided relegation last May, taking 13 points from Reid's eight matches in charge following his arrival in the wake of Terry Venables' sacking.
The departures of Harry Kewell and Olivier Dacourt have added to supporters' fears, while early confidence has been hit with a miserable run of pre-season results.
Yorath, now assistant boss to Peter Jackson at Huddersfield who start life in the Third Division on Saturday, watched his former club comfortably beaten 2-0 by Hull in a friendly on Friday.
Reid fielded a strong side, but was disappointed after another poor performance which followed a defeat at Burnley and draws at York City and Bristol City.
Reid now has just two matches - against Aston Villa on Saturday and St Patricks or Shelbourne on Sunday - to get his players ready ahead of the opener at home to Newcastle on August 17.
Understandably, the fans are concerned and Yorath can understand their pessimism as he said: "There's that saying you shouldn't take any notice of pre-season games.
"In saying that, we've not been beaten in five games at Huddersfield and we're now going into the season feeling quite confident.
"I suppose if you're a Leeds fan and you've bought a season ticket, there's not a lot to look forward to.
"After watching the Hull game I said afterwards David Batty was the best player, but then it was a game which was played at David's pace.
"Hull looked more energetic than Leeds and listening to Leeds fans they are already thinking about going down. That's the word on the street.
"But I don't see it like that. Leeds still have the players to do well. Peter will get his own men in and he will make Leeds into a hard-working side, so I can see them staying up."
"When was the last time Leeds were spoken about in footballing terms?
"There's been court cases, money problems, the chairman has gone, managers have gone, and all after they were flying high in Europe a couple of seasons ago.
"But that was all just an excuse for nearly getting relegated and that shouldn't be the case.