Best known for resigning three days after Argentina's invasion of the Falkland Islands in 1982, he was later chairman of auction house Christie’s from 1988-93.
The hereditary peer took his seat in the Lords in 1945 after serving in the Second World War, where he gained a Military Cross, joining Churchill's government in 1951.
Tributes poured in including from former prime minister David Cameron.
Peter Carrington was a lovely man and a great public servant. It was a huge honour having him to Chequers and listening to his stories of working with every Conservative leader from Winston Churchill onwards. Kindness and brilliance in equal measure; he'll be deeply missed. pic.twitter.com/nPxTobnP8Z— David Cameron (@David_Cameron) July 10, 2018
Anthony Browne, chairman of the British Art Market Federation (BAMF), said: “I had the enormous privilege of working closely with Lord Carrington when he was chairman of Christie’s. His experience of high political office, combined with his exceptional communication skills, led to a much greater appreciation within government of the value of having a large and vibrant art market here in the UK.
“He was certainly one of the most impressive people I have ever known, with a combination of wisdom, integrity, strength of character, boundless charm and a marvellous sense of humour.”