In this paper, we present and analyze a LQ (Linear Quadratic) inverse optimal state-consensus protocol for continuous-time multi-agent systems with undirected graph topology. By Lyapunov analysis of the state-consensus error dynamics, we show the sufficient conditions on the algebraic connectivity of the graph to guarantee LQ inverse optimality and closed-loop stability. A more relaxed stability condition is also provided in terms of the algebraic connectivity. Finally, a formation control protocol for multiple mobile robots is proposed based on the target LQ inverse optimal consensus protocol, and the simulation results are provided to verify the performance of the proposed LQ inverse formation control method.