UPDATE 2014.12.10
This should be the latest update on this.
After the final version of Android Studio v1.0, there is an official way to select your JVM, mentioned here:
http://tools.android.com/tech-docs/configuration/osx-jdk
All the following information is stored only as a link, please do not use it.
UPDATE 2014.11.26
Editing the Info.plist file as suggested in this answer may break your IDE .
Please check out the prescribed solution mentioned by IntelliJ people and this is the preferred solution to this problem.
If any of the incorrect or unwanted effects mentioned there occurs with your installation using this fix, you should restore the plist file and use the outdated JDK 6 instead.
If JDK 6 is not an option for your installation or still has some difficulties when starting the IDE, you can try this fix at your own risk.
Please also read the comments in this answer to view reviews of other community members (yes, good and bad) and my discussions with them.
AFTER UPDATE
This is an outdated answer when Yosemite is at an early stage of Beta and can ruin your current setup (see comments mainly caused by incompatible JVMs when you need to update / update them).
As mentioned in the original answer, this is a dirty fix of the time, and the most suitable way to fix this problem now is to update / update your JVMs, as suggested for your OSX system ,
The original answer is provided below for reference only, if all the JVM updates / updates still do not work for you, at least you can manually install the JVM and use this hack, but please do not raise this answer because there are better ones .
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As mentioned by other users, Apple's JDK and the new OSX seem messy.
However, there is a dirty quick fix for this.
First, find your Android studio, for my car, it is here:
jerry-retina-mbp:Android Studio.app jerry$ pwd /Applications/Android Studio.app
Then find the application description file for it called "Info.plist":
jerry-retina-mbp:Android Studio.app jerry$ ls Contents/Info.plist Contents/Info.plist
Use "Finder" to open this folder:
jerry-retina-mbp:Android Studio.app jerry$ open Contents
Then you can use any text editor you like to change the JVM settings in "Info.plist" (which is just an XML file).
Before:
<key> JVMVersion </key>
<string> 1.6 * </string>
After:
<key> JVMVersion </key>
<string> 1.6+ </string>
Hopefully after this change your Android studio will no longer complain about the JVM.