The 31-year-old has made 16 appearances for Royals this season and will now link up with Dean Saunders' side - who currently lie 21st in the Championship table.
He will join former Reading stars Stephen Hunt and Kevin Doyle at Molineux.
"We've always had a very good relationship Wolves and this initial loan move will importantly get Kaspars playing games," said Reading FC Director of Football Nick Hammond.
"We'd like to wish him the very best of luck."
The Latvian international has enjoyed two successive title winning campaigns in the second tier, joining Brian McDermott's squad in 2011 after helping to steer Queens Park Rangers to promotion to the top flight.
The Royals have an option to recall the centre half after the first 28 days of the loan.
He is one of several Reading players currently on loan including Gozi Ugwu (Plymouth Argyle), Michael Hector (Cheltenham Town), Jordan Obita (Oldham Athletic), Angus MacDonald (Torquay United), Brett Williams (Woking), Joseph Mills (Burnley), Karl Sheppard (Shamrock Rovers).
Brian McDermott's first-team squad are currently in Dubai for a warm weather training camp ahead of Monday's FA Cup fifth round clash at Manchester United (8pm, live ESPN).