Recall that the absolute value is defined by
$$
|x| = \begin{cases} x \text{ if } x\geq 0,\\ -x\text{ if } x<0. \end{cases}
$$
In other words: when the number is positive, the absolute value is the same number; when the number is negative, you have tu change the sign of the number, that is why you have to add a minus. In the problem, you have to do the following substitution,
$$
−y|y|=(−y)(−y)=(−y)^2
$$
because, since $y$ is negative, the absolute value $|y|$ is precisely $-y$.
Thus, we have to find the square root of $(−y)^2$, i.e., a positive nuber whose square is $(−y)^2$. But this is precisely $−y$, since $y<0$. Hence, the answer is $D$.