Residents of the rural district rated their level of happiness as 8.3 out of 10 - well above the national average of 7.5.
For life satisfaction they rated 8.5, compared with a UK average of 7.7.
The survey was compiled by the Office for National Statistics (ONS) between April 2016 and March 2017.
It shows an increase in the UK-wide average for happiness and life satisfaction, compared with the previous year.
The ONS acknowledged the figures "may surprise some", given they cover a period of "political change and uncertainty".
Statistician Matthew Steel said: "It's worth noting that employment rates rose during the period covered by this report, and other ONS analysis showed people perceiving an improvement in their own financial situations and in the overall economy.
"These are factors we believe may account for some people's increased sense of personal wellbeing."
Craven also recorded the lowest level of anxiety.
Residents were asked the question "Overall, how anxious did you feel yesterday?", where 0 is "not at all anxious" and 10 is "completely anxious".
The average rating was 2.1 out of 10, compared with a national average of 2.9.
Although the UK generally reported high levels of happiness, Hertsmere in Hertfordshire reported a below-average rating of 6.9 out of 10.
Residents of Islington in north London and Cheltenham in Gloucestershire reported the lowest rating when asked "Overall, to what extent do you feel the things you do in your life are worthwhile?"
Both scored 7.4 out of 10, while North Warwickshire came out on top with 8.7 against a UK average of 7.9.