Greg James announced the line-up on Monday's BBC Radio 1 breakfast show, telling listeners that the festival will also include Anne-Marie, The 1975 and Raye.
Even more acts are expected to be announced over the coming weeks for the station's flagship music event which changes location around the UK each year.
The 2023 festival will make a triumphant return to Camperdown Park in Dundee after its scheduled 2020 event being cancelled because of the COVID pandemic and will take place over the Bank Holiday weekend from 26-28 May, with 80,000 people expected to attend.
Scottish singer Capaldi said: "I’m very excited to be playing in Dundee for Big Weekend, I never managed to get tickets last time so I’m very excited to be able to come along and enjoy it as well as playing."
Horan added: "I can’t wait to kick off festival season at Radio 1’s Big Weekend 2023 in Dundee. See you all there!"
Parks said: "Can’t wait to be at this year’s Big Weekend! What a joy to perform for you guys in Scotlandddd."
Radio presenter James said he was pleased that Dundee was being given a second chance at hosting the festival.
He said: "We were gutted not to come to Dundee due to the pandemic so it’s massively exciting to finally fulfil our promise this year.
"I was on holiday close to Dundee in the summer and decided I wanted to move there so doing Big Weekend nearby is just the first part of my cunning plan to get out of London. I’m glad Radio 1 have fallen for it."
Dundee City Council leader John Alexander added: "This is an incredible opportunity for Dundee and we are looking forward to hosting such an exciting event at Camperdown Park after the disappointment of 2020’s cancellation.
"Radio 1’s Big Weekend will showcase Dundee not only to the tens of thousands of people who attend, but also the millions who will watch and listen through the BBC. We expect a huge economic boost for the area as the event has been worth millions of pounds to previous host locations."
Details of how to get tickets are set to be announced in the coming months.