The Black Sabbath legend died at the age of 76 in July and his daughter took to social media to explain how being honoured at Friday's ceremony in his home city "would have meant the world to him".
Kelly wrote on Instagram: "Last night I had the honour of accepting my father's lifetime achievement award on his behalf at the @birminghamawards.
"I can't thank everyone enough for their love and support. I know that my dad was shining down on us from heaven with pride because being a #Brummy meant more to him than anything. He loved the city and he loved the people."
The 40-year-old star added: "This honour would have meant the world to him. From the bottom of my heart thank you. #birminghamforever."
Kelly explained last month that falconry had helped her come to terms with her father's passing and allowed her to discover her "smile again".
Sharing a snap of herself with one of the birds on her Instagram Stories, Kelly penned: "In all my sadness and grief, I have found something that makes me happy!
"I never thought I would find my smile again through falconry but I did. I absolutely love being with the birds."
The star - who collaborated with Ozzy on a UK chart-topping cover of Black Sabbath's Changes in 2003 - had described her father's death as "the hardest moment of my life" in the aftermath of the tragic news.
She wrote on social media at the time: "The love, support, and beautiful messages I've received from so many of you have truly helped carry me through the hardest moment of my life.
"Grief is a strange thing, it sneaks up on you in waves - I will not be ok for a while, but knowing my family is not alone in our pain make a difference.
"I'm holding on tight to the love, the light, and the legacy left behind."
Ozzy passed away on July 22, following a series of health problems that included a lengthy battle with Parkinson's disease.
His family said in a statement at the time: "It is with more sadness than mere words can convey that we have to report that our beloved Ozzy Osbourne has passed away this morning. He was with his family and surrounded by love."
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