The station will launch on July 8 and feature shows including Pride and Prejudice, Catherine Cookson's The Cinder Path, Sharpe, Tipping The Velvet, Auf Wiedersehen Pet, Cranford and Lark Rise to Candleford.
UKTV controller Emma Tennant said: "Drama is targeted at a different audience demographic than our other highly successful free-to-air channels, Dave, Yesterday and Really.
"The channel is aimed at people who simply love drama and want to watch critically-acclaimed shows that have absolutely defined the landscape of British television."
She added: "I am very passionate about the subject and discussing the programmes that will create Drama's schedule has just been brilliant fun.
"I'm genuinely excited about the launch of Drama both as a viewer and as controller."
General manager of drama Adrian Wills added: "Drama lovers' prayers have been answered.
"This channel represents the best drama content within the genre and