The organisation argues plans to create such a new form of custody could lead to the closure of secure children's homes (SCHs).
A pilot YOA for east London, which would serve nine boroughs, is currently in the planning stages with a proposal due to be put before ministers by July.
It would provide services for young people exhibiting troubled behaviour including a pupil referral unit, facilities to deliver community sentences, training and employment opportunities as well as a custodial facility.
Frances Crook, director of the Howard League, claims if a YOA is built it would mean an expansion of the youth secure estate at a time when capacity is not an issue.
This could lead to the closure of places elsewhere. In her opinion the most likely casualty would be SCHs.
"Young offender institutes (YOIs) are too big to close and the secure training centre contracts prevent the government from closing them as part of population management."
John Plummer, YOA project director, said: "We share the objectives of the Howard League in reducing the number of children in custody which is why we have proposed this pilot project.
"We want to work with the hundreds of individuals and organisations with whom we have consulted to make sure that we get it right."
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