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Boulter, who is from Leicester and considers this her home tournament, beat Burrage 6-3 6-3 in the first all-British final at this level since 1977.
She had only reached a quarter-final before but now follows Johanna Konta as a British winner here, cementing her position as British No 1 and surging up the rankings to inside the top 80.
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There was a warm embrace between the British pair at the end as Boulter enjoyed her moment.
"I dreamed of this moment, to win this tournament, as a little girl when I was four years old," Boulter said.
"Having come here as a fan and now as a player and somehow found a way to win it means more than everything to me. I've played so many British players, we appreciate an all-British final and what an incredible achievement it is."
It also completed a British double as Andy Murray won the men's Challenger Tour event.
Despite defeat, it was also a breakout week for Burrage in reaching her first final, and with three Britons making the last four, it was a strong response to the criticism for the lack of British women in the French Open singles last month.
Indeed, it is their best showing in a tournament since Virginia Wade and Sue Barker were at the top of the women's game in the 1970s.
Playing at Nottingham has always meant a lot to Boulter, with her mum and granddad able to watch, and she made sure this was going to be her moment from the off as she surged into a 3-0 lead in the first set thanks to an early break.
Burrage has had some long matches this week and after a recent injury said she was "hanging by a thread" physically, and she struggled to match her compatriot throughout.
Boulter broke again but she missed her first chance to serve out the set only to quickly settle any nerves by breaking Burrage for a third time to take the opening set.
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Another early break in the second set tightened her grip on the match and it never loosened, claiming victory and her maiden title on her second championship point.