Not naked, but also not clothed.
No. Naked is naked, as in, no clothing at all. If you’re wearing a towel you’re not naked.
So… if a one-legged man is wearing nothing but a prosthetic leg (to go with his meat leg, of course) is he naked or not?
My car just hit a water buffalo. May I borrow your towel?
Depends on the size of the towel. A beach towel? They’re not naked. A hand towel? A dish towel? A paper towel? Naked.
I’m pretty sure most definitions of naked for men only cover the exposure of the genitals or buttocks. So yea I’d say he is naked.
Offenders will be thrown into the lavalava.
Pretty much, yeah. But the size of the towel, and how it is worn, does make a difference.
I was just watching “The Assassination Bureau, Ltd.” which has a (nice!) scene where Diana Rigg is wearing only a towel. Do I get to say “I’ve seen Diana Rigg naked?” Not hardly.
Your head?
This is how I’d describe it. I’d probably tell either a naked person or a towel-wrapped person, “Go put some clothes on!”
It depends on the situation. This woman wearing just a towel is naked. This woman wearing just a towel is not.
I run around naked under my clothes all the time. 
Wearing a towel that covers the private parts isn’t naked.
Is the towel staying on by itself? If so, then not naked.
If someone told you that a magazine contained a very attractive naked person of your preferred gender, and you opened up the magazine and there was a very attractive person of your preferred gender wearing a towel, would you feel at all deceived?
I think the answer to that question answers the OP.
No, I wouldn’t call a towel naked.
The phrase I don’t get is half-naked, when referring to a woman in skimpy clothes. if both the top and bottom private parts are covered there is no ‘half nakedness’
So, you are on a business trip and your hot 20 something assistant is with you and your wife drops in on you unexpectedly… and while she is there your assistant comes out of the bathroom with only a towel on her her head.
“What… it isn’t like she is naked or anything!”
Good luck with that.
When I was a wee lad, it was pretty common for boys to wrap a towel around their waist over a bathing suit after swimming. This was acceptable for walking around a resort town, the boardwalk, etc., and more decent than wearing a dripping bathing suit. Boys had to wrap it at the waist - anything higher was considered girly.
Ironically, a lot the time when a person is said to be “half naked” they’re actually closer to ninety percent naked.
How much good you reckon somebody’s up to running around unclothed with a towel tied around their neck like a cape?