The marine production, cycling, and air-sea gas exchange of nitrous oxide (N2O) are simulated in a coupled climate-biogeochemical model of reduced complexity. The model gives a good representation of the large-scale features of the observed oceanic N2O distribution and emissions to the atmosphere. The transient behavior of the model is tested for the Younger Dryas (Y-D) cold period (12,700--11,550 BP), which is simulated by releasing a freshwater pulse into the North Atlantic, causing a temporary collapse of the model's Atlantic thermohaline circulation (THC). A temporary drop in atmospheric N2O of about 10 ppb results, while ice-core measurements show a total drop of 25 to 30 ppb. This suggests that terrestrial changes have also contributed to the observed variations. The main cause of the modeled reduction in atmospheric N2O is increased oceanic storage in the short-term and a reduction of new production in the long-term due to increased stratification.