McNeil has joined Frank Lampard's side on a five-year contract to become their third summer signing.
The 22-year-old joins former Burnley teammate James Tarkowski and Sporting Lisbon loanee Ruben Vinagre in moving to Goodison Park this summer.
McNeil 134 appearances in the Premier League for Burnley after coming through their youth ranks, scoring seven goals and providing 17 assists.
He has missed just two Premier League games in the last three seasons and will be hoping to help Everton fare better than last season when they finished 16th.
"It is an amazing feeling to sign. When I heard about Everton's interest I wanted to get it done straight away because of the club and how good the team is," McNeil told evertontv.
"Speaking to the manager about what they want going forward, it really excited me and appealed to me. I wanted to be part of it. He knows me as a player, as does [Director of Football] Kevin Thelwell. I want to work hard and do well for the team and for the fans.
"I feel playing under a manager like Frank Lampard, he will help me to get my stats up - and that is what I want to do and improve my game."
Manager Lampard added: "I have been a big admirer of Dwight for some time. He has huge talent and is exactly the type of player we want to bring into the squad to help us improve."
McNeil could make his Everton debut in their Premier League opener against Chelsea next week.
