The top-seeded Murray became the first British player to win the tournament since Bunny Austin in 1938, who then went on to become the last Briton to reach the Wimbledon final.
"I was quite nervous,'' Murray said. "People were telling me that no (Briton) had won here for 70-odd years so that got the nerves going, especially when I was serving for the match.''
Murray took an early lead with a break in the third game, but Blake immediately leveled with a forehand winner down the line. Both players then easily held serve until 5-5, when Blake missed a forehand on break point.
The second set was equally competitive until Murray broke for a decisive 4-3 lead when a fierce return forced Blake to net a backhand volley.
"I didn't quite know what to expect, but this is some of the best tennis I've played in my life,'' said Murray, who did not drop a set all week. "I'm a long way from winning Wimbledon, but I feel confident. I'll try and not get too far ahead of myself and focus on my first match there, but if I play my best like I did this week I've got a chance.''
Blake said he was beaten by a better player, but that he was pleased with preparation for Wimbledon, which starts June 22.
"I had a good week,'' Blake said. "Playing on the grass, I always have a lot of fun playing here. I feel great. I've been working with my coach and trainer, and I know I'm doing the best preparation possible for Wimbledon. I'll be ready to play and feel great about my chances.''
It was Murray's fourth title of the year, following victories in Doha, Rotterdam and Miami.
The sixth-seeded Blake was playing his third grass-court final, after finishing runner-up here in 2006 to Lleyton Hewitt and losing the Newport final in 2002 to Taylor Dent. He was seeking his first title since August 2007.
Defending champion Rafael Nadal pulled out of the tournament to rest his knees ahead of Wimbledon.
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