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The Santa Maria Valley, stretching from the Santa Lucia Mountains toward the Pacific Ocean, was the homeland of the Chumash people for several thousand years. The Native Americans made their homes on the slopes of the surrounding hills among the oaks, on the banks of the Santa Maria River among the sycamores, and along the coast. They had unique plank-built boats, called Tomol, which they used for ocean fishing.

In 1769, the Portolá Expedition passed through the Santa Maria Valley during the first Spanish land exploration up the coast of Las Californias Province. Mission San Luis Obispo de Tolosa was established just north of the valley in 1772, and Mission La Purísima Concepción was established near present-day Lompoc in 1787. Rather than rich soil, white settlers were attracted here by the possibility of free land. In 1821, after the Mexican War of Independence, the mission lands in Santa Maria Valley were made available for private ownership under a Mexican land grant called Rancho Punta de Laguna. At the end of the Mexican War in 1848, California was ceded to the United States.

In the late 19th century, after California gained statehood in 1850, the area's rich soil attracted farmers and other settlers. By the end of the century, the Santa Maria River Valley had become one of the most productive agricultural areas in the state. Agriculture is still a key component of the economy for the city and the entire region.

Between 1869 and 1874, four of the valley's settlers, Rudolph Cook, John Thornburg, Isaac Fesler (for whom Fesler Jr. High School is named), and Isaac Miller (for whom Miller Elementary School is named), built their homes near each other at the present corners on Broadway and Main Street. The townsite was recorded in Santa Barbara in 1875. The new town was named Grangerville, then changed to Central City. It became Santa Maria on February 18, 1885, since mail was often being sent by mistake to Central City, Colorado. Santa Maria was chosen from the name Juan Pacifico Ontiveros had given to his property 25 years earlier.^{[citation needed]} Streets named after the four settlers now form a 6 block square centered at Broadway and Main Street, the center of town.

Oil exploration began in 1888, leading to large-scale discoveries at the turn of the 20th century. In 1902, Union Oil discovered the large Orcutt Oil Field in the Solomon Hills south of town, and a number of smaller companies also began pumping oil. Two years later, Union Oil had 22 wells in production. Other significant discoveries followed, including the Lompoc Oil Field in 1903 and the Cat Canyon field in 1908. Over the next 80 years more large oil fields were found, and thousands of oil wells drilled and put into production. Oil development intensified in the 1930s, with the discovery of the Santa Maria Valley Oil Field in 1934, right underneath the southern and western parts of the city of Santa Maria, which spurred the city's growth even further. By 1957 there were 1,775 oil wells in operation in the Santa Maria Valley, producing more than $640 million worth of oil.

The 2010 United States Census reported that Santa Maria had a population of 99,553. The population density was 4,255.3 people per square mile (1,643.0/km²). The racial makeup of Santa Maria was 55,983 (56.2%) White, 1,656 (1.7%) African American, 1,818 (1.8%) Native American, 5,054 (5.1%) Asian, 161 (0.2%) Pacific Islander, 29,841 (30.0%) from other races, and 5,040 (5.1%) from two or more races. Hispanic or Latino of any race were 70,114 persons (70.4%).

The Census reported that 98,546 people (99.0% of the population) lived in households, 588 (0.6%) lived in non-institutionalized group quarters, and 419 (0.4%) were institutionalized.

There were 26,908 households, out of which 13,223 (49.1%) had children under the age of 18 living in them, 14,616 (54.3%) were opposite-sex married couples living together, 3,962 (14.7%) had a female householder with no husband present, 1,901 (7.1%) had a male householder with no wife present. There were 1,754 (6.5%) unmarried opposite-sex partnerships, and 190 (0.7%) same-sex married couples or partnerships. 5,079 households (18.9%) were made up of individuals, and 2,431 (9.0%) had someone living alone who was 65 years of age or older. The average household size was 3.66. There were 20,479 families (76.1% of all households); the average family size was 4.06.

The population was spread out, with 31,302 people (31.4%) under the age of 18, 12,170 people (12.2%) aged 18 to 24, 28,486 people (28.6%) aged 25 to 44, 18,204 people (18.3%) aged 45 to 64, and 9,391 people (9.4%) who were 65 years of age or older. The median age was 28.6 years. For every 100 females, there were 102.2 males. For every 100 females age 18 and over, there were 100.7 males.

There were 28,294 housing units at an average density of 1,209.4 per square mile (467.0/km²), of which 13,893 (51.6%) were owner-occupied, and 13,015 (48.4%) were occupied by renters. The homeowner vacancy rate was 1.9%; the rental vacancy rate was 3.8%. 46,463 people (46.7% of the population) lived in owner-occupied housing units and 52,083 people (52.3%) lived in rental housing units.

According to the 2000 census, there were 77,423 people, 22,146 households, and 16,653 families residing in the city. The population density was 4,005.8 people per square mile (1,546.5/km²). There were 22,847 housing units at an average density of 1,182.1 per square mile (456.4/km²). The racial makeup of the city was 58.1% White, 1.9% African American, 1.8% Native American, 4.7% Asian, 0.18% Pacific Islander, 28.02% from other races, and 5.36% from two or more races. Hispanic or Latino of any race were 59.7% of the population.

There were 22,146 households, out of which 42% had children under the age of 18 living with them, 56.4% were married couples living together, 13.3% had a female householder with no husband present, and 24.8% were non-families. 20.0% of all households were made up of individuals, and 9.3% had someone living alone who was 65 years of age or older. The average household size was 3.40 and the average family size was 3.85.

In the city, the population was spread out, with 31.6% under the age of 18, 11.6% from 18 to 24, 29.5% from 25 to 44, 15.9% from 45 to 64, and 11.3% who were 65 years of age or older. The median age was 29 years. For every 100 females, there were 103.2 males. For every 100 females age 18 and over, there were 101.6 males.

The median income for a household in the city was $51,739, and the median income for a family was $48,233. Males had a median income of $28,700 versus $22,364 for females. The per capita income for the city was $13,780. About 15.5% of families and 19.7% of the population were below the poverty line, including 26.5% of those under age 18 and 7.7% of those age 65 or over.