Blair, who was prime minister from 1997-2007, will serve as the Howland Distinguished Fellow for the next academic year.
The former Labor Party leader will facilitate a seminar on faith and globalization and participate in some campus events, the school said.
"The appointment of Mr. Blair provides a tremendous opportunity for our students and our community," said Yale President Richard Levin. "As the world continues to become increasingly inter-dependent, it is essential that we explore how religious values can be channeled toward reconciliation rather than polarization."
The Howland Distinguished Fellowship was created in 1915 to recognize a "citizen of any country in recognition of some achievement of marked distinction in the field of literature or fine arts or the science of government," a statement said.