The electronic, phonon dispersion and optical properties of bilayer BN have been investigated with density functional theory (DFT) calculations. Interestingly, applying the biaxial strain of 4% converts the indirect band gap of bilayer BN to a direct band gap. We show that the interaction between the BN layers results in the removal of two-fold degeneracy and separation of ZA and ZO phonon modes near the Γ point. Across the entire range of applied biaxial tensile strains, the bilayer BN exhibits a dynamically stable behavior. The phonon bandgap of bilayer BN decreases under tensile strain. The bilayer BN has strong adsorption in the UV region and the optical absorption peaks are red-shifted by applying the tensile strain. These findings are essential for the strain engineering of bilayer BN and future fabrication of flexible electronic and optoelectronic devices.