$\newcommand{\Z}{\mathbb{Z}}$ For this post I am going to assume the answer namely $H_*(BO(2))=\Z_2[w_1,w_2]$.
Consider the fibration $S^1 \hookrightarrow BO(1) \to BO(2)$. The $E^2$ page has $E^2_{i,0}=E^2_{i,0}(\Z/2)^{i+1}$. Since the cohomology of $H_*(BO(1))=\Z/2$ in all dimensions, $ H_i(X)=\oplus_p E^\infty_{p,i-p}=Z/2$.
Now the contradiction: There is nothing to get rid of $E^2_{1,0}$ so no matter what there will be a $(\Z/2)^2$ summand in $\oplus E^\infty_{p,1-p}$. In more detail the $d_2$ differentials coming out of and into this spot must be zero because they are maps to or from zero groups; Thus $E^2_{1,0}=E^3_{1,0}$. Now $E^3=E^\infty$. So we obtain that $(\Z/2)^2 \subset H^1(RP^\infty)$. What is wrong?
edit I had made some errors in my first posting. There shouldn't be any now.
The class $w_2$ is in degree $2$, not $1$, so it is not true that $H^i(BO(2))$ has dimension $i+1$ (I assume you mean to be talking about cohomology, though often you write homology instead). In particular, $H^1(BO(2))$ is generated by $w_1$ and thus is $1$-dimensional.