Dame Sarah Storey, 35, is honoured for services to para-cycling after winning four gold medals at London 2012.
With a Paralympic gold medal total of 11, Storey, who is expecting her first child, equals Baroness Tanni Grey-Thompson and Dave Roberts as one of the country's most successful Paralympians.
She said: "Wow, I am speechless but incredibly honoured and extremely proud to be able to accept the DBE.
"I never expected any additional awards after my sporting success, I love competing for my country and that is a huge honour in itself.
"Now to be a dame is beyond anything I could have ever imagined and I cannot thank my family, friends, coaches and support staff over all the years enough for their devotion in helping me to follow the path of becoming the best athlete I can possibly be."
Sarah Storey is leading the women's individual C 4-5 road race at the 44km stage by almost six seconds.