We present results from new Chandra and archival HST and VLA imaging observations of the circumnuclear extended emission in the nearby Type 2 Seyfert galaxy NGC 2110. We find resolved soft-band X-ray emission 4 (~160 pc) north of the nucleus, which is spatially coincident with [OIII] emission, but lies just beyond the northern edge of the radio jet in the source. We find that shock-heating of multi-phase gas clouds can successfully account for this extended emission, although we cannot rule out alternative models, such as the scattering of nuclear radiation by ionized material, or pure photoionization from the nucleus. In addition, we detect kpc-scale (~30) extended soft-band X-ray emission south of the nucleus. Finally, we compare our results for NGC 2110 with the prototypical Type 2 Seyfert galaxy NGC 1068, and suggest that different physical processes could produce extended circumnuclear X-ray emission in Seyfert galaxies.