The 30-year-old beat cricketer Stuart Broad (second) and heptathlete Katarina Johnson-Thompson (third) to the prize, while jockey Frankie Dettori, golfer Rory McIlroy and wheelchair tennis player Alfie Hewett were also up for the accolade.
Earps's crowning marks the first time that footballers have won the award two years running, as her Lionesses teammate and Arsenal striker Beth Mead was bestowed with the 2022 honour.
With Emma Raducanu also taking home the trophy in 2021, Earps's triumph means that the BBC Sports Personality of the Year has now been won by a woman in each of the last three years and for the first time since 1964.
A magnificent year domestically and internationally for Earps saw the England international take home the Golden Glove as the best goalkeeper at the Women's World Cup, keeping three clean sheets during this summer's tournament.
Earps kept England's hopes of a maiden Women's World Cup triumph alive by saving a penalty from Jenni Hermoso in the final, but Sarina Wiegman's side ultimately slumped to a 1-0 defeat before Earps collected her Golden Glove trophy after the game.
The Manchester United goalkeeper also kept more clean sheets than any other player in the 2022-23 Women's Super League with 14, while also reaching the final of the Women's FA Cup with the Red Devils.
Earps's marvellous feats saw her place fifth in the 2023 Ballon d'Or Feminin, while she also took home the BBC Women's Footballer of the Year, England Women's Footballer of the Year and the Sunday Times Sportswoman of the Year prizes.
"First of all, I'm so humbled to be on a list of such incredible athletes. Sport is a fantastic thing where it brings the world together and it's been brilliant to listen to everyone's stories, so congratulations to you all," Earps said on the stage.
"Thanks for voting for me everyone! I'm very honoured and humbled, as this is the ultimate all round sporting accolade. We've had an incredible couple of years but this is just wow.
"It's not been the easiest journey, and I wouldn't be here without my loved ones in my corner, who have been with me through the really not so great times.
"The last two years have been unbelievable, I've done more than I could have ever imagined. Thank you to my goalkeeping coaches, my team-mates and my coaches."
Prior to Earps's coronation, treble winners Manchester City earned another trio of awards, being named the Team of the Year while Erling Haaland and Pep Guardiola won the World Sport Star and Coach of the Year award respectively.
Sixteen-year-old snowboarding world champion Mia Brookes won the Young Sports Personality of the Year prize, and Liverpool legend Sir Kenny Dalglish was honoured with a Lifetime Achievement Award.
Finally, former world javelin champion Fatima Whitbread took home the Helen Rollason Award for "outstanding achievement in the face of adversity", while volunteer Des Smith won the Unsung Hero prize for his work with Sheffield Caribbean Sports Club.