The longest-serving Labour Prime Minister was made a Knight Companion of the Most Noble Order of the Garter - the oldest and most senior British Order of Chivalry, to which appointments are in the Queen's gift without advice from the government.
Doncaster-born Ben lost both his legs, broke his back and suffered brain damage when the land rover he was travelling in hit a landmine in 2006.
In a Facebook post, he wrote:
More than half of Britons disapprove of Tony Blair’s knighthood, according to a YouGov poll.
The father of Lance Corporal Ben Hyde from Northallerton has also criticised the decision to honour Mr Blair.
Ben was just 23 when he and five others were killed by a mob of Iraqi civilians in the town of Majar al-Kabir.
John Hyde said: "Surely it would be far more fitting to honour our service men and women who died for Queen and Country in Iraq than to honour the man who sent them there with a lie."
In response to the criticism, Labour leader Sir Keir Starmer argued the former Prime Minister's involvement with the Iraq War doesn't detract from his successes, which "made huge differences to the lives of millions of people".
Under Mr Blair's premiership, a National Minimum Wage was introduced, Section 28 (which banned teachers 'promoting homosexuality') was abolished and he played an active role in the historical Northern Ireland peace process.
The Tony Blair Institute for Global Change provided the following statement from Mr Blair on receiving the honour:
"It is an immense honour to be appointed Knight Companion of the Most Noble Order of the Garter, and I am deeply grateful to Her Majesty the Queen.
"It was a great privilege to serve as Prime Minister and I would like to thank all those who served alongside me, in politics, public service and all parts of our society, for their dedication and commitment to our country."
Buckingham Palace, who bestowed the honour on Sir Tony, declined to comment on the backlash.