The Blues wing starts his first test in his third appearance for the All Blacks in place of regular No 11 Julian Savea, who has been left out of the squad.
It is a huge vote of confidence in the 20-year-old Ioane, who has been in excellent form for Tana Umaga's Blues team this season but who struggled to make an impact, along with most of his teammates, in the New Zealand Maori defeat to the Lions in Rotorua last Saturday.
However, he performed extremely well against the Lions during the Blues' recent victory at Eden Park. Ioane has pace and power, but, just as importantly, a very high workrate and good ability under the high ball. All of these facets will be tested by the Lions, who will bring an intense physicality, if not a particularly ambitious game plan.
Israel Dagg starts on the right wing, with Ben Smith at fullback. There is no room in the squad for Waisake Naholo, who terrorised the Lions during the Highlanders' victory in Dunedin last week.
Ryan Crotty has been named at centre, alongside second-five Sonny Bill Williams, the selectors clearly happy with the Crusader's fitness after his recovery from a rib injury.
Anton Lienert-Brown, who performed well in the No13 jersey against Manu Samoa last Friday, has been named on the reserves bench, with Aaron Cruden and Lima Sopoaga bracketed on the bench as first-five cover.
A final decision on Cruden's knee injury will be made Friday.
As predicted, No 8 Kieran Read returns from his thumb injury to captain the side. Aaron Smith has been named ahead of TJ Perenara at halfback.
All Blacks head coach Steve Hansen said: "This was a really tough team to pick because there were a number of players in great form vying for positions. But in the end the three selectors felt this was the best combination to take on the Lions in the first test.
Of the returns by Read and Crotty, Hansen said: "They've both been on target to return for this game all the way through, are both in great shape and, together with the rest of the squad, they're really excited at what's ahead of us.
"I'd also like to congratulate Rieko on getting his first start for the All Blacks. His outstanding form throughout the season this year, including against the Lions, has earned him his start on the wing.
"We know this is a very good British and Irish Lions team; probably one of the best to have toured here. It'll be a battle of contrasting styles which makes it an intriguing test to prepare for and to be part of. We know the importance of this match and we will bring real energy and intensity. It'll be a physical test but, just as importantly, it will be a mental test.
"There will be a unique and electric atmosphere at Eden Park on Saturday night. It's something we're really looking forward to and we can't wait."
All Blacks team to play the Lions at Eden Park on Saturday (caps in brackets):
1. Joe Moody (25)
2. Codie Taylor (16)
3. Owen Franks (91)
4. Brodie Retallick (61)
5. Samuel Whitelock (85)
6. Jerome Kaino (78)
7. Sam Cane (41)
8. Kieran Read (97)
9. Aaron Smith (59)
10. Beauden Barrett (50)
11. Rieko Ioane (2)
12. Sonny Bill Williams (34)
13. Ryan Crotty (26)
14. Israel Dagg (62)
15. Ben Smith (61)
Reserves:
16. Nathan Harris (5)
17. Wyatt Crockett (59)
18. Charlie Faumuina (47)
19. Scott Barrett (5)
20. Ardie Savea (13)
21. TJ Perenara (30)
22. Aaron Cruden (47) / Lima Sopoaga (7)
23. Anton Lienert-Brown (10)