Open to the public, the Block Party will take place along Howard Street from 5pm, with many of the area's design and fashion stores set to participate.
Retailers will offer drinks, late opening hours and special offers on products, while local radio station 8 Ball will be providing music via Sonos speakers.
Dixon will present an installation of his recent lighting designs, set to "spill out into the street" from his store.
The shop opened in July 2016, following the success of a previous temporary showroom – his first outside London – which was located nearby. The designer has also recently expanded his physical retail offering to Los Angeles.
The 11 Howard hotel, designed by Space Copenhagen, also began welcoming guests last year and is hosting a wine hour as part of the Block Party.
Other participants include design brands BDDW and Roll & Hill; fashion stores Opening Ceremony, Reformation and Sleepy Jones; homeware shops Dinosaur Designs and Michele Varian; and vendors from the nearby Canal Street Market.
Dezeen is media partner for the Block Party, which forms part of the citywide NYCxDesign festival running from 3 to 24 May 2017.
Among the other exhibitions and events taking place in New York during the month are Sight Unseen Offsite, which is showcasing furniture made through partnerships between New York and Norwegian designers, and a pastel-coloured installation that pairs the work of Ladies & Gentlemen Studio and SP01.