Yorkies, like many terriers, are seemingly fearless and don't let the size of any other dog stand in their way although they will show some apprehensiveness at times.
We had a similar thing happen between our Jack (yorkie mix ... bit on the big size at 18lbs) and a german shepherd - after about a minute of Jack yapping at the GSD (as we kept separating him from the situation) they got along famously and chased each other around the park for about an hour. We only had one incident when the GSD stepped on him and he took great offence to it, but otherwise all worked out well.
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Lucy - 9 yr old border(?) terrier mix
Jack - 8 yr old yorkie terrier mix
Gracie - 7 yr old tuxedo kitty
Monty - RIP buddy
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"If your dog doesn't like someone you probably shouldn't either." - Unknown
"If cats could talk they would lie to you"
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