Various projects will be looked at to apply for funding, with The Friends of Wrens Nest Nature Reserve hoping to be able to benefit.
Elaine Bouckley, who volunteers with the group said: “We are delighted that Dudley is receiving this recognition, of which Wrens Nest National Nature Reserve is particularly worthy as the birthplace of Abraham Darby, who played such an important role in the Industrial Revolution.
“In addition to being one of the country’s most notable geological locations, Dudley features significant limestone quarrying remains and a diversity of rare flora and fauna.
“The possibilities that this recognition will bring will hopefully enable an even wider audience to protect and celebrate our heritage.”
Phipps added that the money would support many projects.
“This opportunity will enable the delivery of a pipeline of exciting projects and place-based investment within our communities, building on the investment already made by the Heritage Fund over the years across the borough.”
Up to £4m of the fund has been used so far, including in Stoke-on-Trent, where the city council is developing a Heritage Prospectus of projects, and working with the University of Staffordshire on heritage skills development.
In addition, a 10-year Heritage Strategy has also been created in Armagh City, Banbridge and Craigavon in Northern Ireland, with the borough council consulting local communities.