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During creation of new Github repository I could choose license under which my project will be hosted on Github. I didn't do that because Github suggested only few licenses to choose (and WTFPL wasn't on the list). However, after repository was created I cannot find any option to indicate either WTFPL license or any other.

Is it possible to setup license for my repo after it was created on GitHub?

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Absolutely. Create a new file called LICENSE and put your terms in there. For quick adding of the license you can use addalicense.com or manually push the file to GitHub using various tools. (or quickly via the GUI)

License file names are normally; LICENSE, LICENSE.txt, LICENSE.md

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