The area now known as Astoria was originally called Hallet's Cove (also spelled Hallett's Cove), after its first landowner William Hallet, (or Hallett) who settled there in 1652 with his wife, Elizabeth Fones. The peninsula was bordered to the north by Hell Gate, to the west by the East River, and the south by Sunswick Creek.^:96 Hallet bought the land in 1664 from two native chiefs named Shawestcont and Erramorhar.^:84

Beginning in the early 19th century, affluent New Yorkers constructed large residences around 12th and 14th streets, an area that later became known as Astoria Village (now Old Astoria). Hallet's Cove, incorporated on April 12, 1839 and previously founded by fur merchant Stephen A. Halsey, was a noted recreational destination and resort for Manhattan's wealthy.

The area was renamed for John Jacob Astor, then the wealthiest man in the United States with a net worth of more than $40 million, in order to persuade him to invest in the neighborhood. He only invested $500, but the name stayed nonetheless, as a bitter battle over naming the village finally was won by Astor's supporters and friends. From Astor's summer home in Yorkville, Manhattan—on what is now East 87th Street near York Avenue—he could see across the East River the new Long Island village named in his honor. Astor, however, never actually set foot in Astoria.

During the second half of the 19th century, economic and commercial growth brought increased immigration from German settlers, mostly furniture and cabinet makers. One such settler was Heinrich Engelhard Steinweg, patriarch of the Steinway family who founded the piano company Steinway & Sons in 1853, which today is a worldwide piano company. Later on, the Steinways built a sawmill and foundry, as well as a streetcar line. The family eventually established Steinway Village for their workers, a company town that provided school instruction in German as well as English. Part of the motivation for locating the Steinway factory in Queens was to keep the workers isolated from the ferment of labor organizing and radicalism occurring in other parts of New York, notably the Lower East Side.

Astoria and several other surrounding villages, including Steinway, were incorporated into Long Island City in 1870. Long Island City remained an independent municipality until it was incorporated into the City of Greater New York in 1898. The area's farms were turned into housing tracts and street grids to accommodate the growing number of residents.

Astoria also figured prominently in early American filmmaking as one of its initial centers. That heritage is preserved today by the Museum of the Moving Image and Kaufman Astoria Studios.

For census purposes, the New York City government classifies Astoria as part of three neighborhood tabulation areas: Steinway (north of Grand Central Parkway), Old Astoria (north of 31st Avenue and approximately west of 31st Street), and Astoria (in the remaining area approximately north of Northern Boulevard / 36th Avenue and approximately west of Hobart Street / 50th Street). Based on data from the 2010 United States Census, the combined population of these areas was 154,141, a decrease of 17,427 (10.2%) from the 171,568 counted in 2000. Covering an area of 2,556.2 acres (1,034.5 ha), the neighborhood had a population density of 60.3 inhabitants per acre (38,600/sq mi; 14,900/km²).

The racial makeup of the neighborhood was 52.2% (80,533) Non-Hispanic White, 4.7% (7,204) black, 0.2% (250) Native American, 14.3% (22,100) Asian, 0.0% (70) Pacific Islander, 1.0% (1,532) from other races, and 2.1% (3,238) from two or more races. Hispanic or Latino of any race were 25.4% (39,214) of the population. The Astoria and Old Astoria tabulation areas had greater Hispanic / Latino and Asian populations, and the Old Astoria area specifically had a greater Black population.

The racial composition of Astoria changed significantly from 2000 to 2010. The most significant changes were the decrease in the Other population by 64% (8,919) and the decrease in the Hispanic / Latino population by 13% (5,705). The White majority also decreased by 2% (1,699), while the Asian minority decreased by 5% (1,120), and the change in the small Black population rounded to 0% (11). Taking into account the three census tabulation areas, the White and Asian populations both actually increased in Old Astoria, but decreased enough in Astoria and Steinway to cause an overall decrease; on the other hand, the Black population decreased in Old Astoria and increased equivalently in the other regions. The decreases in the Hispanic / Latino population and the population of all other races, however, were relatively even across the three areas.

The entirety of Queens Community District 1, which includes Astoria and parts of Long Island City, is bounded to the east approximately by the Brooklyn-Queens Expressway and 81st Street, and to the south approximately by Queens Plaza and Northern Boulevard. It had 199,969 residents according to NYC Health's 2018 Community Health Profile, with an average life expectancy of 83.4 years.^{:2, 20} This is higher than the median life expectancy of 81.2 for all New York City neighborhoods.^{:53 (PDF p. 84)} Most inhabitants are middle-aged adults and youth: 16% are between the ages of 0–17, 41% between 25–44, and 22% between 45–64. The ratio of college-aged and elderly residents was lower, at 10% and 12% respectively.^:2

As of 2018, the median household income in Community District 1 was $67,444. In 2018, an estimated 18% of Astoria residents lived in poverty, compared to 19% in all of Queens and 20% in all of New York City. Around 8% of residents were unemployed, compared to 8% in Queens and 9% in New York City. Rent burden, or the percentage of residents who have difficulty paying their rent, is 47% in Astoria, slightly lower than the boroughwide and citywide rates of 53% and 51% respectively. Based on this calculation, as of 2018, Community District 1 is considered to be gentrifying: according to the Community Health Profile, the district was low-income in 1990 and has seen above-median rent growth up to 2010.^:7

Astoria was first settled by the Dutch, English, and Germans in the 17th century. Many Irish settled in the area during the waves of Irish immigration into New York City during the 19th and early 20th centuries.

Italians were the next significant immigrants in Astoria, and numerous Italian restaurants, delis, bakeries, and pizza shops are found throughout Astoria, particularly in the Ditmars Boulevard area.

Jews were also a significant ethnic and religious group. The Astoria Center of Israel, which is listed on the National Register of Historic Places, was built in 1925 after outgrowing the former Congregation Mishkan Israel, which was built in 1904.

The 1960s saw a large increase of Greek population from mainland Greece, and after 1974, there was an influx of Greeks from Cyprus. This cultural imprint can be seen in the numerous Greek restaurants, tavernas, bakeries, and cafes, as well as several Greek Orthodox churches. In the late 1960's establishment a ‘Greek Town’ in Astoria. From 1960's to 1980's the number of Greeks constantly increased. While the population of Greeks in Astoria was 22,579 in 1980, it dropped to 18,127 by 1990 due to decreased immigration and lower birth rates. During the 2000’s, the Greek immigration dropped again. However, during 2010's and recent economic issues in Greece have seen a resurgence of Greek immigration. Greek organizations in the area include the Hellenic American Action Committee (HANAC) and the Federation of Hellenic Societies of Greater New York.

About 20,000 Maltese also live in Astoria, and although this population has steadily been emigrating from the area, there are still many Maltese, supported by the Maltese Center of New York.

Beginning in the mid-1970s, the neighborhood's Muslim population grew from earlier immigrants from Lebanon to also include people from Kosovo, Albania, Bosnia-Herzegovina, Egypt, Syria, Yemen, Tunisia, Morocco, and Algeria. In the 1990s, Steinway Street between 28th Avenue and Astoria Boulevard saw the establishment of many Arabic shops, restaurants, and cafes, which is unofficially called "Little Egypt", due to the number of Arabs residing there and the mostly Egyptian shops and lounges there.

Croatians from Croatia and Bosnia-Herzegovina have been numerous since the 1960s and their numbers continue to grow. New populations of South American and Balkan peoples have seen significant growth since the early 1990s, including a large population of Brazilians, who reside in the 36th Avenue area. Albanians, Bulgarians, Serbs, and Bosnians have also shown a rise in numbers. Many Spanish Americans live in Astoria, with most of them being of Galician heritage from Northwestern Spain; this community is supported by the Casa Galicia (Galicia House) and the Circulo Español (Spanish Circle).

At one time, many Bangladeshi Americans settled in Astoria, but by 2001, many of them had moved to Metro Detroit. A survey of an Astoria-area Bengali language newspaper estimated that, in an 18-month period until March 2001, 8,000 Bangladeshi people moved to the Detroit area. However, as of 2010, the Bangladeshi American community in Astoria has been increasing.

By the early 21st century, Astoria was one of the most ethnically diverse neighborhoods in Queens, with people from around 100 countries residing there as of 2015. Population losses in Queens were particularly high in immigrant neighborhoods such as Astoria, which suffered the greatest population loss in the city, losing more than 10,000 residents between the years 2000 and 2010.

Additionally, Astoria is the final resting place of New York City mobster Frank Costello as well as ragtime composer and musician Scott Joplin. Both Costello and Joplin are interred at St. Michael's Cemetery. The cemetery hosts annual public events and concerts to celebrate Joplin's musical legacy, including a Joplin retrospective.