Since signing for Wolves in January 2016, Mason has netted six goals in 39 appearances for the Molineux outfit, but the 26-year-old was soon deemed surplus to requirements by new head coach Nuno Espirito Santo.
It had been reported that Mason would be allowed to leave Wolves before the end of the transfer window, and Burton have stepped in to give the former Bolton Wanderers and Cardiff City man a place to gain regular first-team football.
Mason told the club's official website: "I came to watch the game against Birmingham on Friday and I was impressed with what I saw and now I'm really happy to be here and for it to be all signed up.
"I think it will suit me really well, the way the team plays. I know the league really well. It's relentless but I feel I can help the team and I'm really looking forward to it."
Mason could potentially be involved when Burton host Sheffield Wednesday on Saturday afternoon.