Yes, it is possible.
I'm using ubilinux (Debian).
I edited /etc/network/interface, and entered the following for wlan0:
auto wlan0
iface wlan0 inet static
address 192.168.42.1
netmask 255.255.255.0
wireless-essid edison
wireless-mode ad-hoc
Note that /etc/network/interfaces is not available in Yocto, so I'm not sure how you'd do it there, but it should be possible, although I hate saying "it should be possible" without actually testing it.
Once the above is in /etc/network/interface, I did "ifup wlan0"
and I could then use 'iwconfig' to confirm that the Edison was indeed in ad-hoc mode, I could see
root@ubilinux:~# iwconfig
wlan0 IEEE 802.11abgn ESSID:"edison"
Mode:Ad-Hoc Frequency:2.412 GHz Cell: Not-Associated
Tx-Power=31 dBm
Retry long limit:7 RTS thr:off Fragment thr:off
Encryption key:off
Power Management:on
And I could then connect to it with my iPhone. I didn't have time to pass traffic, but I think that demonstrates it can be done.
Rgds,
Dave.