Yield-stress materials, which require a sufficiently large forcing to flow, are currently ill-understood theoretically. To gain insight into their yielding transition, we study numerically the rheology of a suspension of deformable droplets in 2D. We show that the suspension displays yield-stress behavior, with droplets remaining motionless below a critical body-force. In this phase, droplets jam to form an amorphous structure, whereas they order in the flowing phase. Yielding is linked to a percolation transition in the contacts of droplet-droplet overlaps and requires strict conservation of the droplet area to exist. Close to the transition, we find strong oscillations in the droplet motion that resemble those found experimentally in confined colloidal glasses. We show that even when droplets are static, the underlying solvent moves by permeation so that the viscosity of the composite system is never truly infinite, and its value ceases to be a bulk material property of the system.