The £10m scheme to improve the A164 between Beverley and the Humber Bridge is expected to take a year to complete.
East Riding of Yorkshire Council plans to turn a stretch of the road into a dual carriageway and improving roundabouts and pedestrian and cycling facilities.
Councillor Stephen Parnaby said: “When completed, this scheme will make a huge difference for both commuters and the travelling public in the East Riding and will also provide a timely boost to the local economy.”