The ceremony came a day after he was honored with a life-sized statue outside Lucas Oil Stadium.
The Colts honored Manning over the weekend for his 14 years with the franchise, with many of his former teammates in attendance for the festivities.
"It's not been a very good kept secret around here, but no one is ever going to wear this jersey again," owner Jim Irsay said. "Ever, ever."
Manning led the Colts to the playoffs 11 times and to the Super Bowl twice (winning one), while capturing five MVP awards.
"I'm here today because of a bunch of coaches and teammates I came across here almost 20 years ago to try to win a lot of football games," Manning told the crowd at the stadium. "We accomplished those goals."
Earlier Sunday morning, Manning spoke to former Colts teammate and NFL Network analyst Marshall Faulk about the honor.
"Great memories being back here, Marshall," Manning said on NFL Network. "It's hard to believe it's been, like you said, almost 20 years (since my NFL debut). But the relationships with teammates, the fans and coaches -- being back here brings back those great memories.
"This was a great place to play football. These people love football. So the fans were part of our journey. They were right there with us. I'm very grateful and humbled by Jim Irsay's gesture.
"To celebrate with the fans and be here with some old teammates and go into the Colts' Ring of Honor ... is pretty overwhelming, but it means a great deal to me."