Lady Gaga on Wednesday led a list of People magazine’s best-dressed celebrities that included Euphoria star Zendaya and Oscar-winning actress Viola Davis.

Gaga was dubbed “The Icon” in People’s best dressed of the year issue, despite never having set foot on a red carpet. Instead, the magazine praised her high-fashion street looks that ranged from “a sculptural seersucker number to a black lace corseted gown”...