Reagan, who died yesterday at age 94, will be buried alongside her husband former president Ronald Reagan tomorrow at his presidential library overlooking Simi Valley, California.
A fierce protector of her husband and his political legacy, Reagan had outsized influence during her White House years from 1981 to 1989.
Obama and his wife Michelle praised her "proud example" in a statement yesterday, saying she redefined the role of first lady.
Reagan, the 40th US president, suffered from Alzheimer's disease after leaving the White House and went into a long decline, cared for by his wife until his death in 2004.
As a "mark of respect" for the former B-movie actress, Obama ordered that flags be flown at half-staff at federal building, military posts, US naval vessels and diplomatic missions until sunset of the day she is buried.