Bishop, 26, ran a sound tactical race, sticking with the top three runners before taking over in the last 100m, passing American Alysia Montano. Brazil's Flavia De Lima took home the bronze.
Bishop, a native of Eganville,Ont., posted a time of 1:59.62.
Sarah Wells adds silver
Toronto's Sarah Wells, who competed at the 2012 London Olympics, added a silver medal in the women's 400m hurdles.
Wells, 25, ran a strong race, finishing behind American Shamier Little, who was the class of the competition. Deborah Rodriguez of Uruguay took home the bronze.
Wells was clocked in 56.17.
Damian Warner in first after Day 1
Canadian Damian Warner is in first in the men's decathlon through one day of competition. The gold medal favourite, who finished fifth in the event at the 2012 London Olympics, scored 3534 points on day one, 15 more than Brazil's Felipe Dos Santos, who is in second place.
Grenada's Kurt Felix is in third place.
Warner, 25, finished first in the 100m, 400m and long jump portion of the event, and placed fourth in high jump and seventh in shotput.
The final five events of the event will be Thursday, completing with the 1500m.
Andre De Grasse into the finals
Gold medal and hometown favourite Andre De Grasse won his semifinal heat in the 100m with a time of 9.97 seconds. The sprinter will compete in the final which takes place at 8:50 p.m. ET.- VIDEO: De Grasse wins semifinal heat
Khamica Bingham advances
Canada's Khamica Bingham will be the lone representative from the host nation in the women's 100m final Wednesday night.
The native of Caledon,Ont., finished fourth in heat two with a time of 11.14 seconds, qualifying seventh for the finals, which will take place at 8:30 p.m. ET.
Fellow Canadian Crystal Emmanuel finished fifth in heat one, failing to qualify for the final.