Yes, the idea of the short row is to add width to the headband by knitting extra rows for most of it. The area that's not included in the extra rows is narrower and will have the bow placed over it. Your short rows don't use a wrap so all you need do is turn the knitting to the other side, the same way you would turn if you were at the end of a row, that is, take the left needle in your right hand and the right needle in your left hand and start to work back over the sts you've just knit. There's a video here
for short rows and you could just ignore the wraps. Any little hole that's created will be covered by the bow.
Pretty and useful pattern. Good luck with it.