No.  Let $X$ be the blow-up of $\mathbb P^2$ at two points, and let $f : X \to Y$ be the map down to $\mathbb P^2$.  Let $D$ be the strict transform on $X$ of the line between the two points you blew up.  This is a $(-1)$-curve, hence $h^0(X,D) = 1$.  But $D_Y$ is a line in $\mathbb P^2$, which has larger $h^0$.

In fact, the answer is maximally negative, in the sense that given any divisor $D_Y \subset Y$, you can find a birational morphism $f : X \to Y$ such that the strict transform of $D_Y$ on $X$ has $h^0(X,D) = 1$.  (Just blow up lots of points on $D_Y$.)

I might add $h^0(X,D)=1$ does not imply $D$ is extremal; you need to assume that $h^0(X,nD) = 1$ for all $n$.  But this is a somewhat orthogonal question; it's not the issue in the example.