The 23-year-old came into the championships as the quickest Brit over the distance this year and stormed to victory on his home track, the Alexander Stadium.
Both Talbot and James Ellington got fantastic starts as the rain fell on a miserable afternoon in the midlands, leaving Adam Gemili, the second quickest Briton over 200m in history, lagging well behind.
I struggled off the bend and I got cramp when I stumbled out of the blocks
Gemili got himself back into contention as they entered the final straight but ultimately left himself too much to do as Talbot seemed to kick again and cross the line in 20.42, two tenths quicker ahead of his closest challenger.
“You always come to a championships hoping you can win,” he said. “I was up against great competition today so to win was a different matter.
“I’ve got a great rivalry with Adam – we are really good friends off the track and it’s great when we can race each other.”
Gemili explained his poor start but took the result well, congratulating Talbot and insisting that he will look to bounce back quickly.
"I struggled off the bend and I got cramp when I stumbled out of the blocks," he said. "I was fourth in the European U23 last year, then two weeks later I finished 5th in the World Champs.
"I’m so pleased for Danny Talbot, I know how hard he has been working so well done to him."
Elsewhere, Eden Francis won the women’s shot put title ahead of Rachel Wallander with an effort of 16.66m to mark a superb return after a long injury lay off.
“I’m really happy – I’ve been out for 18 months with injury, so to come back and take the title feels really good,” she commented."
Things got even better for the Birchfield Harriers athlete as she made it a double by claiming the discus title later in the afternoon.
Tiffany Porter reigned supreme in the women's 100m hurdles, starting well and never threatening to surrender her lead as she cruised home in 12.85 to guarantee herself a place at her first outdoor European Championships.
The women’s 200m final saw Jodie Williams triumph in 22.79 - just the fourth time she has dipped under 23 seconds - from Enfield’s Bianca Williams in second and Anyika Onuora in third.
Niall Flannery, 23, won his first British title in the 400m hurdles in 49.54 from Tom Burton and Sebastian Rodgers, respectively.
In the women’s 800m, Sky Academy Sports Scholar Jessica Judd secured a place in Sunday’s final as she finished second in her heat in a time of 2:02.02. Judd is the fastest British woman over the distance this year and looked to have plenty left in the tank as she crossed the line.
She will face tough competition in the final from former World and European bronze medallist Jenny Meadows, who won her heat comfortably, and Lynsey Sharp.
41-year-old Yamile Aldama won the women’s triple jump title with the final jump of the competition to overhaul Laura Samuel by just two centimetres with a jump of 13.60m.
The men’s 100m heats saw all the big names safely through to Sunday’s semi-finals. Chijindu Ujah, still buoyed by having gone sub-10 seconds earlier in the year, qualified fastest in a time of 10.26 with reigning champion Dwain Chambers second quickest in 10.34.
“I just hoped to come out and execute, stay consistent. The weather conditions weren’t good – it’s just about winning, if the time comes, the time comes,” said Ujah.
In the women’s event, it was Jodie Williams who most impressed to reach the semi-finals in a time of 11.49 where she will face competition from the likes of Sophie Papps, Asha Philip and Montell Douglas who all did made it through.
The men’s 400m saw Martyn Rooney win through to the final in a time of 46.03 but it was Conrad Williams who qualified fastest in the following heat recording a season’s best of 45.79 seconds. Michael Bingham won the last semi-final in a time of 45.96.
The cold and blustery conditions meant any big throws in the men’s javelin final were unlikely and so it proved with Lee Doran retaining his title with a throw of 70.71m, almost six metres short of his season’s best.
“I opened up well but I struggled today. I wanted to retain my title but do it with a good distance, so I’m pretty annoyed. I’m just worrying too much about my technique,” he said.
The men's long jump went right down to the wire with JJ Jegede taking the gold with his final jump of 7.83m taking him above Dan Bramble.
The day's final event saw Laura Weightman win the women's 1500m final in a time of 4:09.77, holding off Laura Muir on the final straight after a very steady race exploded in the last 300m.
There were also victories for Michael Rimmer in the men's 800m, his seventh national title, Isabella Pooley in the women's high jump, Nick Miller in the men's hammer and Eilish McColgan in the women's 3000m steeplechase.