Defending champion Storey, who has 14 Paralympic gold medals – two fewer than swimmer Mike Kenny, emphasised her class by crossing the line in 3.27.057.
She will face compatriot Crystal Lane-Wright in the gold medal race later on Wednesday in a repeat of the Rio 2016 final.
Lane-Wright, who had to settle for silver in Brazil finished in 3.35.061.
Storey was in dominant form from the off after being paired in the heats with New Zealand’s Nicole Murray.
The 43-year-old, who is set to defend her C5 time trial and C4-5 road race crowns next week, shaved four seconds off her previous record, while Murray faded from a promising start to finish fourth fastest, allowing Wright-Lane another shot at gold.
Murray will face French rider Marie Patouillet for bronze.