The bill, introduced in the Lower House of state parliament just after 11.30am (AEST) on Wednesday, would amend the preamble of the Constitution Act 1902 to acknowledge Aborigines as "the state's first people and nations".
Describing the occasion as "humbling", Ms Keneally said it was a "proud day in this state's history".
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"Our intention is to provide recognition that is long overdue," she told parliament.
"We are enshrining today fundamental truths."
Ms Keneally went on to list the "truths" recognised by the bill: "The truth that our Aboriginal people are the first inhabitants of NSW. The truth of the spiritual and cultural and economic ties that bind our Aboriginal people to their traditional lands and values."
"The truth in the diverse and the unique contributions that many Aboriginal nations and cultures and communities make to the life and the character of our state."
Introduction of the bill followed a traditional smoking ceremony in the parliament's forecourt, attended by MPs from all parties as well as representatives of the indigenous community and NSW Lieutenant Governor James Spigelman.
Didgeridoo player Russell Dawson and a koori dance ensemble from Darlington Public School, in inner Sydney, then led the official procession into the Lower House.
Ms Keneally admitted the bill was symbolic, but said symbols had the "power to shape our attitudes, and our actions".
"There are times when symbols matter very deeply," she said.
"Similar things could be and were said of aspects of the 1967 referendum ... but it recognised that Aboriginal people were Australian people, and the impact of this symbolism was deep and it was far reaching.
"Similar things could be and were said, of the apology to the stolen generation, that were made by this parliament in June 1997, the first of its kind by any parliament in Australia. They were also said of the national apology in 2007.
"Yes these were symbolic gestures, they were deeply symbolic gestures, because they were powerful and necessary expressions of the community's will."
