The approval was given by Business and Energy Secretary Greg Clark today, 16 August.
As the world's largest offshore windfarm, the scheme will power around 1.8 million UK homes once completed.
Up to 300 wind turbines will generate 1,800 megawatts of low carbon electricity. The power will connect to the grid at North Killingholme in North Lincolnshire.
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The project, which is being developed by SMartWind (owned by DONG Energy), will support nearly 2,000 construction jobs as well as 580 operational/maintenance jobs.
Business and Energy Secretary Greg Clark said: "The UK's offshore wind industry has grown at an extraordinary rate over the last few years, and is a fundamental part of our plans to build a clean, affordable, secure energy system.
"Britain is a global leader in offshore wind, and we're determined to be one of the leading destinations for investment in renewable energy, which means jobs and economic growth right across the country."
Brent Cheshire, DONG Energy's UK Country Chairman, added: "Development consent for Hornsea Project Two is very welcome. We have already invested £6 billion in the UK, and Hornsea Project Two provides us with another exciting development opportunity in offshore wind."
(LM/CD)
