Bjoerndalen held a lead of just 0.2 seconds when he began but drew away when Austrian Christoph Sumann was forced to run a penalty loop after misfiring from the prone position.
The victory gave the 36-year-old Bjoerndalen his 11th career medal, moving him to within one of the record held by compatriot and cross country skier Bjorn Daehlie, who won eight golds and four silvers at the 1992, 1994 and 1998 Olympics.
My shooting was fantastic," said Bjoerndalen, who plans to compete at the Sochi Games in 2014. "I went fast and skied great. I'm really satisfied with my race. It was perfect.
"I went at my maximum. I just did my job. That's me."
Austria grabbed silver and Russia bronze in the 19-team race held in difficult conditions.
After Bjoerndalen delivered a flawless display in the final round of standing shooting, his three team mates stood up and yelled in celebration as the raucous, flag-waving crowd cheered and rang cow bells.
Bjoerndalen, who won a silver in Vancouver in the 20km individual, grabbed a Norwegian flag after entering the stadium for the final time. He grinned broadly all the way to the finish line before thrusting both arms skywards in joyful triumph.
The Norwegian grinned all the way to the finish line before thrusting both arms skywards in joyful triumph at winning his sixth career gold medal.
Norway completed the course in 1:21.38, a comfortable 38.6 seconds ahead of Austria. The battle for the silver was a dogfight to the finish with Russia crossing the line just 0.2 seconds behind Austria.
Sumann, a silver medal winner in the pursuit, called the relay "the most evil race in my life."
"I felt good when I got the range and I felt Ole would start really fast with his shooting," he said. "I tried to stay clam. Then I took four shots with no hits."
"I don't know what happened. I panicked."
Simon Eder, who skied the first leg for Austria, said the driving snow made the course challenging.
"It was very difficult because you are so wet at the shooting range and everybody was slipping," he said.
"Fortunately, there was no wind at the shooting range so that was not a problem. But the ski conditions were very difficult."
Norway were in seventh place after Halvard Hanevold's opening leg but soared to the front by the next exchange on superb skiing by Boe Tarjei, who blew two shots but more than made up for it.
"It was perfect," he said. "I was in great shape but I did have two penalties. I missed maybe because I was not focused enough. Overall, I was happy to have a great race."
Emil Hegle Svendsen, who has now won two golds and a silver in Vancouver, jockeyed with Austria for the lead during the third leg before handing over to Bjoerndalen.