Hyde takes over for Buck Showalter, who was fired after Baltimore finished 47-115 -- the worst record in the majors. This will be Hyde's first stint as a major league manager.
Hyde, 45, was selected by general manager Mike Elias, who began an extensive search for Showalter's replacement after being hired last month to replace Dan Duquette.
"I believe that we have found the ideal leader for the next era of Orioles baseball," Elias said of Hyde.
Hyde worked as Chicago's bench coach this year under manager Joe Maddon. He was in the second of three seasons as Cubs first-base coach when the team won the World Series in 2016.
Before that, Hyde served as Rick Renteria's bench coach in Chicago in 2014. He previously served as Chicago's director of player development from August 2012 through 2013 after joining the Cubs in December 2011 as their minor league field coordinator.
Prior to joining the Cubs, Hyde spent nine seasons in the Miami Marlins organization. He was Miami's bench coach from June 2010 through the end of the 2011 season.
"Brandon's deep background in player development and major league coaching -- most recently helping to shape the Cubs into a world champion -- has thoroughly prepared him for this job and distinguished him throughout our interview process," Elias said.
Elias and Hyde will seek to develop a team that shifted into rebuild mode last July under Duquette, who traded away many of the team's stars -- most notably Manny Machado, Zach Britton, Jonathan Schoop and Kevin Gausman -- for 15 prospects and international bonus pool money in moves that cut payroll from $151 million to $136 million.
On the day he was introduced by Baltimore, Elias spoke about the significance of landing the right manager to shape the Orioles into a team that can be competitive in the AL East.
"This is an important hire," Elias said on Nov. 19. "... It's not something you rush. We want to get the right person for this time."
Hyde will be formally introduced as the 20th manager in Orioles history on Monday.