Otto of Lippe was a son of of Bernhard II of Lippe. He was bishop of Utrecht as Otto II from 1216 to 1227. Several of his brothers also held high ecclesiastical offices in the Rhineland.

During the Fifth Crusade, Otto visited the Palestine.

In 1227, Otto was joined by his former enemy, count Florence IV of Holland, to suppress a rebelion by the people of Drente, lead by Rudolf of Coevorden. He died in the Battle of Ane (a town close to Hardenberg) on July 27, 1227.