Jota helped Wolves gain promotion to the Premier League in 2018 before joining Liverpool in 2020.
"Diogo was not only a phenomenal footballer, but someone who carried himself with humility and kindness throughout his time at Wolves, and will be sorely missed by all of us," Wolves' director of football administration Matt Wild said in a statement late on Thursday.
Billy Wright, Derek Dougan and Steve Bull are among those already inducted in the club's Hall of Fame, which was established in 2008.