Jones, who also won gold at the European Games earlier this year, beat Iran's Kimia Zenoorin - who controversially beat her at the Worlds - and Korea's Sohee Kim to progress to the -57kg final.
And despite trailing to world number two Eva Calvo Gomez, she stormed back back to claim her first win on home soil since London 2012.
"There's always added pressure when you are at home but there was no way I was leaving without the gold," said Jones.
"I feel like my form is getting back to where it used to be. My form probably did take a bit of a dip after London but I'm much better physically now and I've been getting better and better mentally this season too."
However, there was disappointment for world champion Bianca Walkden, who suffered a golden point defeat to China's Shuyin Zheng in the +67kg final.
"I'm devastated," she admitted. "I'm still recovering from my knee injury and I'm probably only at 80 percent but you still want to win. It's all good points for Olympic qualifying but it's still upsetting."