Taylor, 33, the Darlington second row, has been capped 78 times and played at three World Cups, including every match of the 2014 triumph in France.
Taylor will captain England in the absence of Katy McLean, who has been named in the sevens squad for the World Series in Brazil in February.
Nicky Pondsford becomes acting head coach following Gary Street's departure on Monday after eight years in charge.
England begin their Six Nations campaign away to Wales on 8 February.
BBC Sport's Sara Orchard believes Taylor will be a "popular choice as captain with the players. With England rebuilding and the sevens squad in Brazil, the coaches will look to her lead an inexperienced side against Wales," she said.
"The coaches have explained they'll review the captaincy after each game with Katy McLean remaining England captain [in the long run].
"But her fly-half duties with sevens may prevent her having a significant role in this Six Nations."
BBC Sport