The former Manchester City man arrives to provide competition with Marc Tierney on the left of defence after long-serving Adam Drury left the club this summer.
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"It gives us real competition in the squad, and for me an important factor was the fact that he has played in the Premier League before.
"He has played in La Liga, Serie A, and the Premier League, so he is a player of real experience."
The Spaniard becomes the fifth new face at Carrow Road of the close-season, following Steven Whittaker, Jacob Butterfield, Robert Snodgrass and Michael Turner into the club.
He spent two years with City between 2007 and 2009, initially recruited by then-manager Sven-Goran Eriksson, and left after making 49 league appearances for the club who are now Premier League champions.
Hughton also confirmed earlier on Thursday that, as well as Garrido, Norwich have made enquiries about Blackburn goalkeeper Mark Bunn.