The monument also marks the graves of 17 men of the 18th and 50th Regiments killed at the Battle of Nukumaru on 25 January 1865 who are buried nearby.
The soldiers were British and McDowell said some of them would have had children born in New Zealand and living descendants here.
"The monument is a special thing that lies at the heart of our city," he said.
"I also want to acknowledge those who did the mahi to restore this work."
Dalton said it is very appropriate that the monument rests on the Veterans' Steps.
"Just as our own kin who died in battle overseas are looked after by the people in those countries, we look after those who died here.
The blessing was intended to honour all those who took part in the wars and respect the context in which the battles occurred.
"The monument was the first example in New Zealand of a sculptured lion, representative of departed British heroes," said Stubbs.
The names of the soldiers are listed on panels set in the alcove behind the Lion which is
one of 83 national monuments and historic gravesites throughout New Zealand for which Manatū Taonga is responsible.