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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”.