Percy Jeeves played for the Goole Cricket Club and professionally for Warwickshire and Hawes before his death in World War One in July 1916.
PG Wodehouse used his name for the immaculate valet after seeing him play at Cheltenham in 1913.
The plaque is on the corner of Manuel Street, Goole, where Jeeves lived.
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It was organised by the Goole Civic Society and unveiled by his great nephew Keith Mellard.
Mr Mellard, 79, said: "I'm absolutely thrilled to be unveiling the plaque.
"His brother, Alec Jeeves, was my grandfather. He used to talk about him a lot and I grew up feeling I knew him.
"To be honoured in this way is very exciting."
Margaret Hicks-Clarke, chair of the society, said: "We could think of no finer person to honour with our first blue plaque, being unveiled in the anniversary year of Percy Jeeves's death.
"He was a great cricketer and a brave soldier who paid the ultimate sacrifice for his country."
Jeeves, who was born in 1888 near Dewsbury, West Yorkshire, grew up in Goole before playing county cricket for Warwickshire.
Mrs Hicks-Clarke said: "His father had moved to Goole to work on the railways at the start of the 1900s and Percy lived in a little terraced house with his family."
Comic novelist PG Wodehouse brought the Jeeves character to life in a series of short stories and books in which the knowledgeable and perceptive butler helped his master Bertie Wooster cope with life's vagaries.
The plaque, which is placed on the Oddfellows building at the corner of Manuel Street and Boothferry Road, has been funded by the Goole and District Lottery, Goole Town Cricket Club and the PG Wodehouse Society.

The centre at Milton, Stoke-on-Trent, is licensed to hold about 500 tonnes of recyclable waste, but last December the Environment Agency estimated there were about 6,000 tonnes.
The agency wants excess waste gone by July and said progress has been made.
Owner Hanbury Plastics Recycling Ltd (HPR) said it was applying to increase its licence to hold 3,000 tonnes.
Resident June Grimes said: "[We] shouldn't have to put up with the smells and the issues as these sites bring when [they're] put on your doorstep.
"What we want to see happen is this site completely cleared and relocated to a suitable industrial site."
Ms Grimes filmed images on her mobile phone of drivers trying to negotiate Milton's narrow lanes and bridges.
She added: "We have got heavy goods [vehicles], left hand drive, coming on our roads where our children walk to go to school and they're that big, they're mounting the pavement as they're going down."
A spokesman for the owners said it was the best way to deal with plastics, otherwise they would end up in landfill.
HPR said it was planning to double the workforce to 60 over the next few years.
An agency spokesman said it issued the company with a notice in December to remove excess waste from the firm's site.
He said: "Since that time, we have carried out regular checks to ensure that the company is working to remove the waste by the end of June 2014.
"To date, the company have made progress and moved waste from the site. We will continue to monitor progress and then decide on the best course of action once the deadline has been reached."
A blue plaque honouring a cricketer whose name inspired author PG Wodehouse's butler Jeeves has been unveiled.
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Residents are calling for a recycling collection centre to be closed after it was told to remove excess waste.