The ceremony was held at the Ricoh Arena's new memorial garden before the club's last home match of the season against Sheffield United.
The former TV pundit and Professional Footballers' Association chairman, who lived in Hurstpierpoint, West Sussex, died in December.
The dean of Coventry Cathedral opened the garden and led the ceremony.
The Very Reverend John Whitcombe said a band played ahead of the ashes being scattered.
The garden will be open for fans to scatters the ashes of loved ones who were Coventry City fans.
A tribute service was held at the city's cathedral in February which drew hundreds of people.
Hill joined Coventry City as manager in 1961, leaving six years later shortly after winning promotion to the First Division for the first time.
The former Match of the Day presenter was diagnosed with Alzheimer's in 2008 and died on 19 December, aged 87.
The ashes of ex-Coventry City manager and chairman Jimmy Hill have been scattered at the club's stadium.