The X-Men star unveiled a plaque at the University of Huddersfield and watched a performance devised by drama students.
The site was previously known as the Milton building and is a Victorian former church.
The actor was born in nearby Mirfield, and was the university's chancellor for more than 10 years.
Sir Patrick said he was "very proud" of the honour.
The classically trained actor, known for his roles in Star Trek: The Next Generation and the X-Men films is currently on tour alongside fellow actor and friend Sir Ian McKellen in Harold Pinter's play No Man's Land.
Other university buildings have been named after local historical figures such as factory reformer Richard Oastler and the BrontÃ«s.
Actor Sir Patrick Stewart has had a university building housing a drama department named after him.