Dobey won seven matches at the Robin Park Tennis Centre in Wigan to secure his tenth career Players Championship title.
The 35-year-old opened with a 6-4 win over Dennie Olde Kalter before averaging 109.74 in a 6-1 victory over Rhys Griffin. He followed that with triumphs over Jim Long (6-2) and Luke Woodhouse (6-1), averaging 104.38 to reach the quarter-finals.
Wins over Richard Veenstra (6-3) and Andrew Gilding (7-1), the latter with an average of 103.45, carried him into the final.
Hood, playing in his first final on the pro tour, made the stronger start, taking the opening two legs with finishes of 121 and 167, both on the bullseye.
Dobey responded with five successive legs, including a 164 checkout, to take control at 5-2.
Hood stayed in contention with two further bull finishes to close at 7-4, but Dobey completed the victory on double two, finishing with a 105.28 average.
“The way I’ve been playing throughout the year, I’m hoping to pick up more titles,” said Dobey.
“It’s hard just to win one of these, so to win ten is a great feeling.
“I remember that game Justin had at the World Championship when he was 11/11 on the doubles. When those two bull finishes went in, I thought: ‘Not again!’
“He put up a good fight with some great shots at crucial times, but I played some good stuff all day, and I’m delighted with another win.
“I just want to start doing it on TV and picking up some European Tour titles. I know I can do it, it’s just about being consistent."
Elsewhere, Beau Greaves became the first woman to reach a quarter-final on the pro tour, beating Raymond van Barneveld and Jonny Clayton before losing to Gilding.
Results
Last 16
Tom Bissell 6-4 Krzysztof Ratajski
Connor Scutt 6-3 Steve Lennon
Tom Sykes 6-3 Martijn Dragt
Justin Hood 6-3 Mensur Suljovic
Beau Greaves 6-4 Joe Hunt
Andrew Gilding 6-4 Luke Humphries
Chris Dobey 6-1 Luke Woodhouse
Richard Veenstra 6-5 Kevin Doets
Quarter-finals
Connor Scutt 6-4 Tom Bissell
Justin Hood 6-0 Tom Sykes
Andrew Gilding 6-3 Beau Greaves
Chris Dobey 6-3 Richard Veenstra
Semi-finals
Justin Hood 7-3 Connor Scutt
Chris Dobey 7-1 Andrew Gilding
Final
Chris Dobey 8-4 Justin Hood