Sir Barry said he is still trying to get used to his new title, which he is finding "a bit surreal".
He added: "It is a high award that your culture can give you and that is something I am enormously proud of."
The Bee Gees are considered to be one of the most successful bands of all time - their hits include Massachusetts, Night Fever, Stayin Alive, Jive Talkin, How Deep Is Your Love, Words, Tragedy and You Win Again.
They also wrote hits for artists including Barbra Streisand (Woman in Love and Guilty), Dionne Warwick (Heartbreaker and All the Love in the World), Kenny Rogers and Dolly Parton (Islands in the Stream), Celine Dion (Immortality) and Diana Ross (Chain Reaction). Not to mention Frankie Valli's Grease.
Sir Barry said: "Working with Barbra Streisand and different artists has always been special for me.
"I love to write for people. It is not just thinking, 'Oh, I will write a song today' but then when someone you admire asks you to write a song that is special motivation."
Sir Barry and his siblings was born on the Isle of Man before his family moved to Manchester and he grew up in Australia.
He is still making music and performed in the 'legends' slot at Glastonbury last year.