Final answer:
The condition in newborns characterized by yellow skin due to high bilirubin levels is known as jaundice or icterus. It is caused by the immature liver's inability to process bilirubin effectively.
Step-by-step explanation:
The condition described in newborns that involves a yellow coloration of the skin due to the accumulation of bilirubin is known as jaundice or icterus. This condition occurs when the concentration of bile pigments, particularly bilirubin, becomes high enough that the blood cannot hold any more, leading to the diffusion of bilirubin into peripheral tissue, which then takes on a yellow color. Newborns are particularly susceptible to jaundice because their livers are not fully developed, which can result in difficulty processing bilirubin. Jaundice is classified into different types, with chronic idiopathic jaundice being an autosomal recessive disorder where there is excessive excretion of bile pigments in the urine, affecting not only the secretion of bilirubin but also of conjugated estrogens and other substances.