The 32-year-old is the second player to move from Wakefield to The Shay since the end of last season, following centre Joe Arundel.
Wood, who has also played in Betfred Super League for Castleford Tigers and Huddersfield Giants, scored 26 tries in 165 games during two spells at Wakefield.
His contract expired this month and he said: “I’m delighted to join Halifax and excited about the challenge of going part-time while kick-starting my career outside of rugby.
“Grixy [coach Simon Grix] and his staff have a clear vision for the club and I can’t wait to be a part of it and help bring through the next generation of young players into the first team.”
Halifax are aiming to build on this year’s third place finish and Grix sees Wood as a key addition to their promotion-chasing squad.
He said: “Kyle has had a great career in Super League and is certainly capable of remaining at that level.
“Fortunately for us, Kyle sees part-time rugby as more of an appeal for his future. He is a smart player, able to manipulate the ruck and bring players on to the ball, creating all-important ruck speed.
“His knowledge of the game and experience are real assets for us as we bring in another player with leadership qualities.”