The 34-year-old, who joined the county in 2012, said that he came to the decision “over the last couple of months”.
Hodd has had a challenging campaign and has lately been replaced in the Royal London One-Day Cup by Jonny Tattersall.
Tattersall will now push Hodd for a Championship place with first-choice wicketkeeper Jonny Bairstow on international duty.
“I thought I’d got over the emotional bit when I made it (the decision) final to myself a couple of weeks back, but telling the boys was hard and I’ll miss all of them,” said Hodd.
“Because it’s all I’ve ever really known, I think there will be a long, long line of things I will miss, but first and foremost the boys will be the ones I miss.
“Half the reason you start playing cricket is for the changing room antics and atmosphere.
“I’ll miss them all the way down from the staff and (director of cricket) Martyn Moxon to the youngest guy on the staff.”
Hodd has played 56 first-class matches for the club, scoring 1,694 runs at an average of 25.28 and claiming 161 catches and 11 stumpings.
He initially joined Yorkshire on loan from Sussex before signing a permanent deal.
Moxon said: “It has been an absolute pleasure working with Andrew over the last six years. He has been a brilliant wicketkeeper throughout his career, and his influence on the team here at Yorkshire has been outstanding.
“I would like to thank him for his contribution to Yorkshire cricket.”
Yorkshire’s potential Royal London Cup semi-final against Hampshire has been brought forward to avoid a clash with England’s opening match in the football World Cup.
The game in Southampton will now start at 11am instead of the advertised 2pm so that spectators can watch England’s fixture against Tunisia in Volgograd, which starts at 7pm.
It follows a request from Hampshire Cricket to which both the England and Wales Cricket Board and Sky TV - which will still screen the match as planned - were sympathetic.
Yorkshire will advance to the semis if they beat Essex at Chelmsford in a quarter-final play-off on Thursday (2pm start).
Due to their ongoing involvement in the RLC competition, Yorkshire will no longer provide the opposition when India A visit Emerald Headingley for a one-day match on Sunday.
An ECB XI will now face the tourists, with admission free.