The former World No.1 edged past her Swedish opponent 6-1, 6-3 after 66 minutes on Wednesday, reports Efe.
The third seed had grabbed a 3-0 lead in just seven minutes of play.
Larsson, a former world number 45, tried to fight back, especially in the second set when she saved three break points.
It was, however, not enough to contain the Dane, who struck 19 winners to 12 unforced errors, while Larsson, who struggled to find her range throughout the match, hit 13 winners and made 26 unforced errors.
Wozniacki will now play either 2008 Australian Open champion Maria Sharapova or Sweden's Rebecca Peterson in the third round.