Portugal's president and the prime minister flew to the island to unveil the tribute to the player outside the terminal entrance.
President Rebelo de Sousa said Ronaldo "projects Madeira and Portugal across the world far more than anybody else".
The 32-year-old is a local hero in Madeira, where he is seen as a rags-to-riches success. He already has a museum about him in his hometown of Funchal.
The player later said on Twitter: "Happy and honored to have my name given to the Madeira airport!"