The 22-year-old, recently named BBC Sports Personality of the Year, caps an incredible 12 months with the honour.
Elsewhere, former England manager Gareth Southgate has been knighted after leading England to two consecutive European Championship finals and the 2018 World Cup semi-finals, making him the most successful incumbent since Sir Alf Ramsey.
The 54-year-old, who left the role shortly after England’s defeat to Spain in the Euro 2024 final in July, becomes the fourth former England manager to receive a knighthood, after Ramsey, Sir Walter Winterbottom, and Sir Bobby Robson.
Gerald Davies, the former Wales and British and Irish Lions wing who subsequently served as president of the Welsh Rugby Union, has also been knighted for services to his sport and for voluntary and charitable service in Wales.
Davies played for Wales between 1966 and 1978 and won three Grand Slams. He toured with the Lions in 1968 and 1971 making five appearances.
Nine-time Paralympic champion Hannah Cockcroft has been made a Commander of the Order of the British Empire (CBE).
Meanwhile, Hodgkinson is one of 14 2024 Olympic champions to be honoured.
Cyclist Tom Pidcock and swimmer Duncan Scott are both upgraded to become Officers of the Order of the British Empire (OBE) along with Helen Glover, who came out of retirement to land a rowing silver medal in the women’s four.
Glover, a double gold medallist in London and Rio, was coaxed back for the Paris cycle after giving birth to twins in January 2020.
Also becoming MBEs are rowing champions Lola Anderson, Georgie Brayshaw, Emily Craig, Imogen Grant, Lauren Henry and Hannah Scott, cyclists Sophie Capewell, Emma Finucane and Katy Marchant, trampoline gold medallist Bryony Page and kite-surfing winner Ellie Aldridge.
Athletics stars Katarina Johnson-Thompson, who won her first Olympic medal with heptathlon silver in Paris, and three-time medallist Dina Asher-Smith are also made MBEs.
Penny Briscoe, the director of sport at the British Paralympic Association who also served as Chef de Mission for the fifth time in Paris, is made a CBE.
Alongside Cockroft, 23 other Paralympic gold medallists from Paris are honoured, including OBEs for swimmers Tully Kearney and Alice Tai, cyclist Jaco Van Gass, and rowers Lauren Rowles and Erin Kennedy.
Also becoming OBEs are former Formula One racer Martin Brundle, for services to motor racing and sports broadcasting, and ex-Manchester United boss David Moyes. Alan Hansen, the former Liverpool great and long-time BBC pundit, has been made an MBE for services to football and broadcasting.
Dawn Astle, who set up the Jeff Astle Foundation to campaign for more research into head injuries in football on behalf of her father, has been made an MBE.