The performing arts college was found to be excelling in all areas, including the quality of education, students' behaviour, development, leadership and management, and the quality of the educational programmes.
The report follows a three-day inspection by the watchdog, Ofsted, in January.
With 'outstanding' marks in all areas, there was no shortage of praise for the college, which only opened four years ago.
The report reads: "Leaders and staff have an extremely clear vision for CAPA College to provide specialist education that enables talented young performers and students in creative production to access a high-quality performing arts education.
"Leaders have a relentless focus on providing the best teaching, support and outcomes for their students.
"The energy and passion that staff have for their subjects is infectious and creates a unique and special learning environment for all students to learn and thrive in.
"Students benefit from an excellent programme of careers guidance throughout their two years at the college. This supports them well to progress to prestigious universities and performing arts conservatoires."
Open to 16 to 19 year-olds, the free school is part of the Enhance Academy Trust.
There are currently around 270 pupils enrolled.
The college, which is the only non-fee paying specialist creative and performing arts college of its kind in Yorkshire, is currently in temporary accommodation based at Unity Hall on Westgate, but will move to its purpose-built premises on Mulberry Way in September.
A spokesman for the college said: "CAPA College was already a jewel in Yorkshire’s crown, it now takes it position amongst the UK’s elite of ‘outstanding’ education providers."