The 20-year-old spent time on loan with the Sky Blues last season but was restricted to just one appearance as League One was halted permanently due to the pandemic.
However, Coventry have been promoted as champions since and Giles will return to join their Championship squad for the new season.
It’s the latest step in the development of the wing-back, who made his senior Wolves debut in the 2018/19 FA Cup away at Shrewsbury Town.
He later impressed at League One level on loan at the Shrews, before his brief first stint at Coventry.
Everyone at Wolves would like to wish Ryan all the best during his second spell with the Sky Blues.