Fourteen people sit on the steering group, hailing from the city's arts, music, business, education and political sectors.
The group has until December 2017 to work on its bid to best showcase the city.
Leader of the panel Sharon Watson, said the 2023 bid would "belong to the people of Leeds".
Ms Watson is artistic director of Phoenix Dance Theatre and trustee for the West Yorkshire Playhouse, The Place and Matthew Bourne's New Adventures.
She said the group would have "the drive and the ambition to create a bid that will be a great representation of Leeds".
"Leeds is a city with so much to be proud of and this is a once-in-a-generation opportunity for us all to show that to the world," she added.
Also on the panel is Godfrey Worsdale, director of the Henry Moore Foundation, and Judith Blake, leader of Leeds City Council.
Ms Blake said the first meeting was "inspiring" and she expected "a formidable and eclectic bid that will be tough for any city to beat."
"It brings home just how rich and varied our city's cultural offering really is," Ms Blake said.
Previous UK holders of the title are Glasgow in 1990 and Liverpool in 2008.
A Leeds council report said the cost of hosting the title has previously ranged from Â£14.5m to Â£58m.
The first meeting has been held to decide on Leeds' bid to become European Capital of Culture 2023.