The 38-year-old, who has won 22 medals, including 11 golds, has been named on the cycling team for the Rio Games, which run from 7 to 18 September.
Storey will be aiming to retain the four titles she won at London 2012.
"It's just as exciting to be named in the team today as it was for my first Games in Barcelona in 1992," she said.
Storey competed in four Paralympics as a swimmer - in 1992, 1996, 2000 and 2004 - before switching to cycling in 2005.
Her medal haul for Britain is second only to swimmer Mike Kenny, who won 16 golds and two silvers from 1976 to 1988.
Fellow London 2012 medallists Neil Fachie, Jody Cundy, Jon-Allan Butterworth, Karen Darke, David Stone and tandem pilot Helen Scott have also been selected in the cycling team.
Fachie and Pete Mitchell, the three-time world champions, will ride together, while Scott pilots Sophie Thornhill.
"London was an amazing experience but any Paralympics is just a phenomenal festival of sport that you want to be part of," Fachie, who won gold and silver with pilot Barney Storey four years ago, told BBC Sport.
"We are going in as favourites, but I would rather that than having to go in and do something special on the day.
"Everyone is coming for us and getting close, but we are in a good place. As long as we keep improving, hopefully we will be on that top step again."
Fellow tandem pairs Lora Turnham and Corrine Hall, and Steve Bate and Adam Duggleby are also included, along with newcomers Megan Giglia and trike rider Hannah Dines.
A second team announcement will be made at a later date to name the riders who will occupy the remaining places.
Kadeena Cox, who won gold at the UCI Para-cycling track World Championships in Italy in March and is hoping to compete in cycling and athletics in Rio, has not been selected as she awaits a cycling reclassification in July.
GB squad: Jon-Allan Butterworth, Steve Bate & Adam Duggleby, Jody Cundy, Karen Darke, Hannah Dines, Megan Giglia, Neil Fachie & Pete Mitchell, Lora Turnham & Corrine Hall, Sophie Thornhill & Helen Scott, David Stone, Dame Sarah Storey.
Dame Sarah Storey, Britain's most successful Paralympian of the modern era, has been selected for her seventh Paralympics.