All via Make it and Love it
The tall waistband is folded over for a comfy fit.

Depending on what size you're making,  cut the bottom section of the shirt off.  This will be the main section  of the skirt.  And remember, the bottom hem of the shirt will be the new  bottom hem of the skirt......so don't cut it off.  
Then, if you have enough fabric  left on the shirt cut out a piece that's big enough for the yoga band.   Mine came from the back of the shirt.  (If not, use some fabric from a  different shirt or some knit fabric from your scrap pile.)  My waist  band piece was 20 inches wide x 9 inches tall........but if I had more  fabric, I would have made it about 20 x 11 inches.  Just to give the  waistband more height.  Because I love an even taller/adjustable waist  band. 
Then fold this piece in half  lengthwise and sew with a 1/2 inch seam allowance along the two shorter  ends, creating a tube.  (I used a serger but if you're using a sewing  machine, use a zig-zag stitch or a knit freindly stitch.  Need help with  knits?  Click here for more info.)
Then turn your tube right side  out and fold the tube down inside itself in half, keeping the right side  of the fabric on the outside. 
Then gather up the top raw edge  of the bottom section of the skirt.  Make your basting stitch about 1/2  inch from the top.  (Need help with gathering?  Click here.)  Gather in the skirt so that it's the same width as your band that you just folded in half.
Fold the band down over the top  of the gathered section and pin this section evenly in place.  Don't  stretch it as you're pinning.  
Make sure you are pinning the raw  edge of the skirt with the 2 raw edges  of the folded band.  The actual  fold of the band is at the other end of  the band..........shown in the  upper left side of the image below.
 Now, serge or zig-zag those  layers together (3 layers in all), using a 1/2 inch seam  allowance.......all the way around the skirt.  If your basting stitch  happens to be showing, pull on those threads to remove them.
Then iron/steam that seam  flat......along with the upper fold of the band.  (And if you had just a  bit of stretching while sewing the layers together in the last step,  steaming will help shrink it back down a bit.  But if it was  over-stretched, you may have to pick it out and try again.  Or if it  just keeps stretching out and the waist band is too big..........make  your band a bit smaller and then adjust the gathering as well.  That  should take care of it.)
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