Structural, electronic and magnetic properties of ilmenite-type CoVO3 have been explored via the generalized gradient approximation + effective Hubbard Ueff correction, in the framework of density functional theory. Our results indicate that the high temperature rhombohedral phase is metallic with Co2+ () and V4+ () oxidation states and electronic configurations, while the low temperature triclinicphase, detonated from spin-Peierls transition in the V-V dimerization manner, is insulating, maintaining charge and electronic states of cations unchanged. Furthermore, the A-type antiferromagnetic ordering, where the ferromagnetic honeycomb layers are anti-aligned along the stacking axis, is identified to be the magnetic ground state for the low temperature phase, in nice agreement with the experimental findings and analogous to CoTiO3. The unexpected intralayer ferromagnetic couplings can be attributed to the intraorbital t2g-t2g exchange coupling, which was assumed to be small earlier and ignored, but actually large in honeycomb cobaltates with 3d7 electronic configuration. In addition, the computed magnetic moment on Co2+ ion ranges from 2.5 to 2.7 μB, Hubbard Ueff dependent, close to ideal S = 3/2 state, rather than the anticipated Jeff = 1/2 state. The excessive structural distortion triggered by the formation V-V dimerization, i.e., the breaking of trigonal symmetry around Co2+, which lifts the degeneracy of t2g orbitals and increase crystal field splitting, drives it away from potential candidates for realizing Kitaev model physics.