The 33-year-old has signed a two-year contract, with the club holding an option for a further year, becoming the Tigers' first summer signing.
Butland is a nine-time England international who has made more than 450 senior career appearances.
He brings a wealth of experience to Sergej Jakirović's squad.
The shot-stopper played every minute of Rangers' 2025/26 Scottish Premiership campaign, making 55 appearances across all competitions last term.
He totalled 157 appearances in three years at Ibrox.
Butland lifted the Scottish League Cup in his debut season at the club and earned both the Rangers' Player of the Year and Players' Player of the Year awards, while also being included in the Team of the Year.
Bristol-born Butland started out at Birmingham City before making his name in England's top flight.
Seventy-seven of his 87 Premier League appearances came during a seven-year spell at Stoke City between 2013 and 2020, where he twice won the club's Player of the Year award.
His other ten top-flight outings came at Crystal Palace.
The 6ft 5in goalkeeper also had loan spells at Cheltenham Town, Barnsley, Leeds United, Derby County and Manchester United.
Butland represented England from Under-16 to Under-21 level and turned out for Great Britain at the 2012 Olympics. He became the Three Lions' youngest-ever goalkeeper when he made his senior debut in 2012, aged 19.
"I'm delighted it's all sorted now and I'm really excited to be here. It's a great challenge and a fantastic season to look forward to.
"The Premier League is the best league in the world and, personally, it's a great opportunity to be on the biggest stage again. I believe it's the level I'm capable of playing at, and I've done it before.
"As a club, we've got a great challenge back in the Premier League, not just to stay in the league but to really enjoy it and do as well as we can.
"The last few years playing at an incredible club like Rangers, somewhere I hold close to my heart, meant it had to be something really enticing to change that.
"The European nights and all the experience I gained up in Scotland, and my experience prior to that, are going to set me up perfectly for the challenge ahead this year.
"I've already had some chats with the goalie coach; he seems like a great guy and I've heard great things about him, which is really important to my time here.
"It can't come quickly enough. I'm really looking forward to seeing the fans in a really exciting season for us as a club."