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Inter Milan's Barella scored a great volley to give Italy the lead
Italy overcame a Belgian fightback and came in third place in the Nations League.
Nicolo Barella opened scoring with a quick volley just after the Turin interval, before Domenico Berardi scored from penalty spot.
Belgium was in trouble three times, but Charles de Ketelaere pulled one back late on.
They tried to find an equalizer, but Italy's 37-game unbeaten streak was ended Wednesday by Spain.
After a slow start to the bronze-medal match Barella ignited the match with a spectacular first-time strike in the corner.
Roberto Mancini's team doubled their lead after Thibaut Courtois' glove couldn't divert Berardi from the top corner. Timothy Castagne had taken down Federico Chiesa.
Belgium continued to dominate possession, and Courtois released Kevin de Bruyne as a substitute to find De Ketelaere. He nutmegged a otherwise inspired Gianluigi Darumma from close range.
Italy's goalkeeper, Jan Vertonghen and Toby Alderweireld were previously denied by the former Tottenham defenders with clever saves.