Levy who represented Canada’s women’s hockey team at Seoul 1988 and Barcelona 1992, steps into the role vacated by Cathy Stewart.
According to COC, Levy will be responsible for the "future evolution" of the organisation’s "people strategy", including diversity and inclusion programmes.
During her 11-year hockey career, Levy claimed two medals at the Pan American Games, winning silver at Havana 1991 and bronze at Indianapolis 1987.
Following her retirement, Levy was part of the "mission team" for the Nagano 1998 Olympic Winter Games - where she provided legal support for athletes - before being named Canada’s Chief de Mission for the Nanjing 2014 Youth Olympic Games.
The COC highlighted that Levy had also held the role of director of special projects for the Toronto 2008 Olympic Bid Corporation and was a director and chief of the Human Resources Committee for the Toronto 2015 Pan American and Parapan American Games Organising Committee.
"Having had the opportunity to be involved in many different levels in the sport world, joining COC feels like coming home.
"I really look forward to working with the dedicated and talented members of Team Canada."
Levy is a trained lawyer with more than 20 years’ experience as a human resources executive, working for the Canadian National Institute for the Blind, RioCan Management Inc and Manga.
David Shoemaker, COC chief executive and secretary general, said the organisation has been able to "lean" on Levy’s "experience and expertise" over the years.
"We are incredibly lucky to have her join our team permanently," said Shoemaker.
"She holds an incredible resume of transforming organizations through her people-first approach but perhaps most importantly, she has a depth of understanding of the Canadian Olympic Movement and the values-based governance we strive to achieve every single day.
"I would certainly be remiss if I did not take this opportunity to congratulate Cathy Stewart on a wonderful career to date, and thank her for the tremendous impact she has had on both our organisation and the Canadian sport community.
"We wish Cathy and her family nothing but the very best."
Levy is set to be begin her role as chief people officer on November 9.
"From watching Montreal 1976 as a child and being so inspired by it all to realising my dream of becoming an Olympian and now working for the COC - this is a full-circle moment and a dream come true," Levy said.