Hodgson was born in Burnley and lived in Burnley, Nelson and Colne, Lancashire during his early life, attending Ss John Fisher and Thomas More RC High School. He began riding motorcycles at age six on his brother's bike around playing fields in Brierfield near his grandmother's home. He supports Burnley F.C. and his hobbies include motocross, trials and mountain biking. He lives in Onchan on the Isle of Man and married Victoria Hodgson in 2023; they have a daughter Hollie-Jean and son Taylor.
A schoolboy motocross rider from 1982 through 1989, Hodgson was voted Rider of the Year in 1986–87. He made the leap to road racing on Easter Sunday 1990 at a meeting at Langbaurgh (Teesside Autodrome) on a Yamaha TZR125, taking his first win at the Three Sisters meeting that same year. He finished 8th in his first season in the British Clubman's Ministock class. In 1992 he moved to the 125cc International Supercup and became British National 125cc Champion aged 18. He was then selected to compete in the FIM World 125cc Championship as the youngest rider in the series and Britain's only representative in the class with Team Burnett (Roger Burnett), finishing 24th. In 1994, HRC Honda selected him as one of five officially supported riders in the 125cc World Championship with Team Burnett. He also took part in two 500cc World Championship races for the Harris-Yamaha team.
In 1995 Hodgson moved full-time to the 500cc World Championship with WCM, developing a reputation as a smooth but impetuous rider who crashed frequently. He finished 11th in the championship.
For 1996 Hodgson moved to the Superbike World Championship with Ducati, beginning a frustrating three-year spell in the series, with the latter two years spent with Fuchs Kawasaki. His best championship finish in this era was 9th. His first podium came at Laguna Seca Raceway in 1996.
For 1999, Hodgson returned to the British Superbike Championship with GSE Racing, spending the season re-establishing himself on a superbike. His teammate Troy Bayliss took the British Superbike title that year. The 2000 season produced one of the most dramatic championship battles in the series, with Hodgson battling Chris Walker, who rode for Suzuki, across the entire season. The championship came down to the final race at Donington Park, where Walker appeared set for the title until his engine failed with three laps remaining, allowing Hodgson to clinch it. Hodgson also won two races at British rounds of the Superbike World Championship that year as a wildcard entry — one at Donington Park and one at Brands Hatch. A memorable race at Oulton Park saw Hodgson start from the back of the grid after stalling his bike and still win. A controversial incident in race 2 — contact with Walker on the final lap resulting in Walker crashing — earned Hodgson a post-race penalty.
GSE Racing stepped up to the Superbike World Championship full-time for 2001, with Hodgson joined by James Toseland in the Ducati satellite team. Hodgson was a race winner and finished 5th overall. In 2002, with Troy Bayliss and Colin Edwards dominant, Hodgson secured pole positions en route to 3rd overall. After both Bayliss and Edwards departed for MotoGP, Hodgson became the number one rider for the works Ducati team in 2003 and won the championship against teammate Ruben Xaus.
For 2004, Hodgson and Xaus joined Ducati's second-string MotoGP team, Team d'Antin Ducati. Hodgson struggled with the extreme power delivery of the Desmosedici compared to a WSB Superbike, and the team had limited funds for a test programme. Xaus ended the year as rookie of the year while Hodgson finished 17th in the championship. Hodgson stated he would never return to MotoGP, citing a combination of age and nationality working against him.
With the aim of becoming the first rider to win all three Superbike titles — British, World and American — Hodgson moved to the American Motorcyclist Association (AMA) championship in the United States for 2005, finishing sixth to Mat Mladin. He finished 5th in the 2006 AMA Superbike Championship. Ducati pulled out of the AMA series for 2007, and Hodgson struggled to find a ride. On 11 April 2007 he was confirmed as a test and development rider for Ducati, replacing the injured Shinichi Ito. He returned to the AMA for one round at Mazda Raceway Laguna Seca on a Corona Honda, finishing fifth. He rejected the opportunity to stand in for Toni Elías on a Gresini Honda at the Sachsenring MotoGP round, believing it would affect his chances of landing a full-time Superbike ride. On 5 September 2007, Honda America announced Hodgson would race for them in the 2008 AMA Superbike season on the new Fireblade. In 2008 he finished 6th in the AMA championship, picking up two 3rd-place finishes at Miller Motorsports Park, before signing for the Corona Honda team again for 2009. In 2009 he started strongly with a 2nd-place finish at the Daytona circuit before a motocross training accident left him with a collapsed lung and a dislocated shoulder, causing him to miss three rounds. He eventually finished 11th on 167 points.
Hodgson returned to the British Superbike Championship for the 2010 season with Motorpoint Yamaha alongside Dan Linfoot. On 22 April 2010 he announced his retirement from British superbikes and competitive motorcycle racing due to the shoulder injury from his previous AMA season motocross accident, which he had aggravated in the first round of the 2010 British Superbike Championship at the Brands Hatch Indy circuit on 5 April. Ian Lowry replaced him in the Motorpoint Yamaha team. Hodgson is a patron of the National Association for Bikers with a Disability.
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