To start you're going to make a basic yo- yo. The only thing you'll do different is not fold the fabric over when sewing around the circle. There's no need since the fabric will not fray. Also the center will end up to bulky if you fold the fabric over.
For these flowers I used a 5" diameter circle pattern. My stitches were about a centimeter. apart.
Felt Flower Yo-Yo #1
With a pair of fabric scissors, cut your yo-yo where you see the yellow lines. Sew a button in the center. Done.
Felt Flower Yo-Yo #2
With a pair of fabric scissors, cut your yo-yo where you see the yellow lines. Be careful not to cut where the stitching is. Sew a button in the center. Done.
By changing the width and depth of the cuts you can get a large variety of flower shapes. If you want to make garland just string them on ribbon, you don't have to do anything extra to them.