Youths with it claim Yankee title (8)
I believe the answer is:
ladyship
'title' is the definition.
('your ladyship' is a title)
'youths with it claim yankee' is the wordplay.
'youths' becomes 'lads' (lad means a boy or young man).
'with it' becomes 'hip' (I've seen this in another clue).
'claim' is an insertion indicator (inserted letters are claimed or taken in).
'yankee' becomes 'Y' (phonetic alphabet: alpha, bravo, charlie etc.).
'lads'+'hip'='ladship'
'ladship' enclosing 'y' is 'LADYSHIP'.
(Other definitions for ladyship that I've seen before include "No way to address a duchess!" , "Female title" , "Her --, respectful term of address" , "Respectful address to titled person" , "Title used to a woman of rank" .)