The 22-year-old graduated through the Sky Blues' academy and made his debut on the opening day of the 2008-09 season, and has since gone on to make 144 appearances for the club.
Able to play in a number of positions across the back, Clarke arrives at Huish Park until the New Year, in a bid to boost the Glovers' defensive options.
Whilst the pacey right-back arrives in Somerset, central defender Aaron Martin has departed the club, joining Coventry on loan.
Martin, who arrived in the summer from Birmingham City, has made 14 appearances for Yeovil scoring three times.
However, with the recent arrivals of Ryan Inniss and Clarke, the 25-year-old has joined Steven Pressley's side until January.