Double Hopf bifurcation analysis can be used to reveal some complicated dynamical behavior in a dynamical system, such as the existence or coexistence of periodic orbits, quasi-periodic orbits, or even chaos. In this paper, an algorithm for deriving the normal form near a codimension-two double Hopf bifurcation of a reaction-diffusion system with time delay and Neumann boundary condition is rigorously established, by employing the center manifold reduction technique and the normal form method. We find that the dynamical behavior near bifurcation points are proved to be governed by twelve distinct unfolding systems. Two examples are performed to illustrate our results: for a stage-structured epidemic model, we find that double Hopf bifurcation appears when varying the diffusion rate and time delay, and two stable spatially inhomogeneous periodic oscillations are proved to coexist near the bifurcation point; in a diffusive predator-prey system, we theoretically proved that quasi-periodic orbits exist on two-or three-torus near a double Hopf bifurcation point, which will break down after slight perturbation, leaving the system a strange attractor.