Arriving on a free transfer from League Two rivals Notts County, the 31-year-old becomes Darren Way’s first permanent signing of the summer.
Able to operate at left-back or in the middle of defence, Dickinson graduated through Stoke City’s Academy before going on to help the Potters earn promotion to the Premier League in 2008.
After representing the Staffordshire outfit in the top flight of English football, he enjoyed loan spells with Leeds, Barnsley and Portsmouth before earning a move to Watford in 2011 for a fee in the region of £250,000.
Renowned for his work rate and robust style of defending, Dickinson made over 40 appearances for the Hornets prior to a three-year stay at Port Vale in League One which included a stint as club captain.
Snapped up by the Magpies in 2016, he made 72 appearances for the Nottinghamshire side including 32 during last season’s run to the play-off semi-final before being signed up by the Glovers.
Delighted to have captured the defender’s services, Town’s boss told YTFC.net: “The club has needed someone with Carl’s experience and his signature is one we were determined to get.
“He’s played at the highest level and has been a warrior and winner throughout his career, characteristics shown by winning promotion to the Premier League with Stoke.
“A real leader of men, Carl will be massive for us both on and off the pitch and will complement our squad of talented younger players whilst adding to our experienced core of Nelson, Bailey, Zoko and Fisher.
“Carl is a selfless character but adds strength, resilience and a never-say-die attitude and I’m excited to work with him for at least the next two years.”