The Esso filling station, on Scarborough Road, is currently closed for the refurbishment which is expected to last until 2020.
New facilities will include a "small ancillary bakery outlet" and the development is "expected to create 10 new job roles in addition to the current jobs available at the site".
The £3.5million investment from Euro Garages, which a large part of it's network is operated under the Esso brand, is part of a national refurbishment and upgrade program.
There are around 45 planning permissions across the UK for similar developments - 12 of which have already been built and open.
Tom Jeremiah, Group Planning Director at Euro Garages, said “We are really pleased to have gained planning permission at this site having worked closely with East Riding Council.
"The new development involves the demolition of the existing roadside services and delivering a new modern facility to serve motorists and local customers.
"This is part of our nationwide modernisation program and we are investing £3.5 million at this site to provide a new petrol filling station and ancillary bakery.
"As well as benefiting our existing and new customers the development will also create new employment opportunities for people in the area. We look forward to opening the new services in spring 2020.”
The forecourt at the fuel station was also refurbished in 2013 with new tank, new pumps and a refitted canopy.