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The 27-year-old world 19 defeated Germany's Julia Goerges 6-4, 3-6, 6-3 to add the Mallorca grass court crown to her maiden title at Estoril seven years ago.
Sevastova had finished runner-up at the Spanish event in 2016, losing to Caroline Garcia, but she avenged that loss against the Frenchwoman in the semi-finals this year.
"It’s my second final here. I won, but it was a tough match. I hope the tournament will be back here next year," said Sevastova, who took a two-year break from tennis between 2013 and 2015 before returning.
Goerges said she was happy that Sevastova came back to the sport, a decision which paid dividends with a run to the US Open quarter-finals in 2016.
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"I’ve known you a long time, and there were some years when you told me you didn’t want to play tennis anymore, and now here we are," Goerges said during the trophy ceremony.
"I’m so glad I was able to play this final against you because I think you’re a great player. I’m so happy you're back in tennis, but hopefully you’ll let me win next time, and play many more finals together."