The area where Daytona Beach is located was once inhabited by the indigenous Timucuan Indians who lived in fortified villages. The Timucuas were nearly exterminated by contact with Europeans through war, enslavement and disease and became extinct as a racial entity through assimilation and attrition during the 18th century. The Seminole Indians, descendants of Creek Indians from Georgia and Alabama, frequented the area prior to the Second Seminole War.

During the era of British rule of Florida between 1763 and 1783, the King's Road passed through present-day Daytona Beach. The road extended from Saint Augustine, the capital of East Florida, to Andrew Turnbull's experimental colony in New Smyrna. In 1804 Samuel Williams received a land grant of 3,000 acres (12 km²) from the Spanish Crown, which had regained Florida from the British after the American Revolution. This land grant encompassed the area that would become Daytona Beach. Williams built a slave-labor-based plantation to grow cotton, rice and sugar cane. His son Samuel Hill Williams would abandon the plantation during the Second Seminole War, when the Seminoles burned it to the ground.

The area now known as the Daytona Beach Historical District was once the Orange Grove Plantation, a citrus and sugar cane plantation granted to Samuel Williams in 1787. The plantation was situated on the west bank of the tidal channel known as the Halifax River, 12 miles north of Mosquito Inlet. Williams was a British loyalist from North Carolina who fled to the Bahamas with his family until the Spanish reopened Florida to non-Spanish immigration. After his death in 1810, the plantation was run by his family until it was burned down in 1835. In 1871, Mathias Day Jr. of Mansfield, Ohio, purchased the 3,200-acre tract of the former Orange Grove Plantation. He built a hotel around which the initial section of town arose. In 1872, due to financial troubles, Day lost title to his land; nonetheless, residents decided to name the city Daytona in his honor, and incorporated the town in 1876.

In 1886, the St. Johns & Halifax River Railway arrived in Daytona. The line would be purchased in 1889 by Henry M. Flagler, who made it part of his Florida East Coast Railway. The separate towns of Daytona, Daytona Beach, Kingston, and Seabreeze merged as "Daytona Beach" in 1926, at the urging of civic leader J.B. Kahn and others. By the 1920s, it was dubbed "The World's Most Famous Beach".

Daytona's wide beach of smooth, compacted sand attracted automobile and motorcycle races beginning in 1902, as pioneers in the industry tested their inventions. It hosted land speed record attempts beginning in 1904, when William K. Vanderbilt set an unofficial record of 92.307 mph (148.554 km/h). Land speed racers from Barney Oldfield to Henry Segrave to Malcolm Campbell would visit Daytona repeatedly and make the 23 mi (37 km) beach course famous. Record attempts, including numerous fatal endeavors such as Frank Lockhart (Stutz Black Hawk, 1928) and Lee Bible (Triplex Special, 1929), would continue until Campbell's March 7, 1935 effort, which set the record at 276.816 mph (445.492 km/h) and marked the end of Daytona's land speed racing days.

On March 8, 1936, the first stock car race was held on the Daytona Beach Road Course, located in the present-day Town of Ponce Inlet. In 1958, William France Sr. and NASCAR created the Daytona International Speedway to replace the beach course. Automobiles are still permitted on most areas of the beach, at a maximum speed of 10 mph (16 km/h).

As of 2010, there were 33,920 households, out of which 19.5% were vacant. As of 2000, 18.0% had children under the age of 18 living with them, 30.1% were married couples living together, 14.5% had a female householder with no husband present, and 51.6% were non-families. Of all households, 39.4% were made up of individuals, and 14.4% had someone living alone who was 65 years of age or older. The average household size was 2.06 and the average family size was 2.77.

In 2000, the city the population was spread out, with 17.6% under the age of 18, 16.6% from 18 to 24, 25.6% from 25 to 44, 20.5% from 45 to 64, and 19.7% who were 65 years of age or older. The median age was 37 years. For every 100 females, there were 99.7 males. For every 100 females age 18 and over, there were 98.5 males.

In 2000, the median income for a household in the city was $25,439, and the median income for a family was $33,514. Males had a median income of $25,705 versus $20,261 for females. The per capita income for the city was $17,530. 23.6% of the population and 16.9% of families were below the poverty line. Out of the total population, 34.9% of those under the age of 18 and 12.1% of those 65 and older were living below the poverty line.

As of 2000, English spoken as a first language accounted for 90.37% of all residents, while 9.62% spoke other languages as their mother tongue. The most significant were Spanish speakers who made up 4.01% of the population, while French came up as the third most spoken language, which made up 0.90%, and German was at fourth, at 0.86%, as well as, Arabic with 0.66% of the population.