Head and neck squamous cell carcinomas harbor areas of differentiated tissue known as keratin pearls. Using defined cell culture conditions, we modeled this terminal differentiation by cornification in a primary tumor spheroid model leading to increased cell adhesion, proliferation stop, and diminished tumor-initiating potential. RNA-seq, ATAC-seq, and proteome analysis revealed chromatin closure and a wound healing-associated signaling program via STAT3, SMAD2/3, C/EBPβ, c-JUN and other effectors associated with increased expression of KRT17 and cornification markers including SPRR3. Although KRT17 represents a basal stem-cell marker in normal mucosa, we confirm KRT17 as differentiation marker in human HNSCC tissue. Moreover, we describe a common tissue architecture in normal mucosa and HNSCC tissue with distinct cell differentiation states transitioning from a proliferating basal-like compartment to a wound healing-associated signaling zone to a cornifying core. Thus, our data indicate that the targeted differentiation of HNSCC cells may be a promising strategy for anti-HNSCC therapy.