A set of points $S$ in $d$-dimensional Euclidean space $\mathbb{R}^d$ is called a 2-distance set if the set of pairwise distances between the points has cardinality two. The 2-distance set is called spherical if its points lie on the unit sphere in $\mathbb{R}^{d}$. We characterize the spherical 2-distance sets using the spectrum of the adjacency matrix of an associated graph and the spectrum of the projection of the adjacency matrix onto the orthogonal complement of the all-ones vector. We also determine the lowest dimensional space in which a given spherical 2-distance set could be represented using the graph spectrum.