In 1982, Universal contemplated the idea of opening an amusement park in Florida to compete with Disney. They considered building a similar version of their Studio Tour tram ride located at Universal Studios Hollywood, retaining the studio backlot tour theme to set it apart from what Disney was offering at Disney World. However, Universal abandoned the idea after attempts to partner with a skeptical Paramount Pictures failed to materialize. The Studio Tour in Los Angeles continued to thrive, especially with the addition of a new, massive scene based on the 1976 film King Kong. It opened in 1986 as King Kong Encounter and became an instant hit with guests, boosting attendance and prompting Universal to revisit the idea of building a theme park in Orlando.

That same year, former Disney Imagineer Peter Alexander, who worked on the life-size King Kong animatronic and later became an executive at Universal Creative, met with his friend and renowned director Steven Spielberg to discuss the creation of a Back to the Future simulator ride. Star Wars creator George Lucas, who recently helped Disney design the well-received Star Tours attraction at Disneyland, had previously boasted to Spielberg that Universal was incapable of building such a ride. Spielberg and Alexander gladly accepted the challenge and began working on the ride's concept. Universal was already working on the design for its backlot tram tour attraction in Florida, which would include multiple scenes depicted at the Hollywood location.

In 1987, Disney CEO Michael Eisner – previously the CEO at Paramount when Universal pitched their Florida park idea several years earlier – announced intentions to create their own studio backlot tour at Walt Disney World. The new area, to be called Disney-MGM Studios, was a preemptive move to counter Universal's planned introduction into the Orlando market. Universal claimed that Eisner took advantage of his prior access to their plans for Orlando, borrowing some of the concepts, but Disney denied Eisner ever saw them. They also noted that planning for Disney-MGM Studios began in 1981, long before Eisner was hired. The corporate war between the two had spilled over into the public relations sector, described as a "nasty feud" by the New York Times in 1989.

Universal had publicly revealed their plans for Orlando ahead of Eisner's announcement, but Disney was in a better position to fast-track construction and open sooner. This forced Universal to rethink their approach and abandon the tram tour concept design for the park. Instead, they opted to build standalone attractions while retaining the overall studio backlot theme. Their projected opening day lineup would include Kongfrontation, Jaws, and the Spielberg-Alexander collaborative project, Back to the Future: The Ride.

A large theme park with separate attractions was a new concept for Universal, and their creative team ran into multiple obstacles during development and testing. Among the casualties from the early troubles was the Back to the Future ride, which had its opening delayed by nearly a year.

Many of the attractions over the years were developed in close collaboration with directors, producers, and actors from the films on which they were based. In many cases, actors reprised their roles, contributing new dialogue and footage to fill pre-show queues and action sequences within the attractions. Rip Torn and Will Smith contributed to Men in Black: Alien Attack, Revenge of the Mummy featured footage of Brendan Fraser and Arnold Vosloo, and multiple members of The Simpsons cast collaborated on The Simpsons Ride. Other examples involved directors, such as Steven Spielberg's assistance on the development of several rides including E.T. Adventure, Back to the Future: The Ride, and Jaws.

Universal Studios Florida was originally designed to function as both a theme park and working production studio. Several movies, television series, commercials, music videos, and other forms of media have been produced onsite throughout its history. Nickelodeon Studios was one of the early pillars behind the working studio concept, and it was featured in various locations throughout the park in the form of soundstages. Popular kids' shows such as Double Dare were produced on location, and guests could tour the facilities for a behind-the-scenes experience.

Film production also occurred onsite. Psycho IV: The Beginning was the first film to be produced at the Florida park location while it was open to the public, and visitors during the park's first month of operation were able to get a glimpse of live production. In 1991, John Landis was forced to move from Universal Studios Hollywood to Universal Studios Florida to finish filming the comedy film Oscar, after a disgruntled employee set a fire that destroyed most of the set at the Hollywood location.

For a brief time, Universal Studios Florida featured a backlot tour tram ride attraction, called the Production Studio Tour, with elements that were similar to the version at Universal Studios Hollywood. Guests toured active production set facilities in use for film and television. Disney heavily invested in the same working studio concept, but shortly after Universal Studios Florida opened, filming at the parks and even in the state was becoming less attractive. Producers complained of the logistics, expenses, and limited available resources. Consequently, Universal ended the Production Studio Tour only five years into the park's history in 1995, and Nickelodeon's TV production moved to California in 2005. Smaller shows and commercials continued to be produced, but the backlot studio concept was becoming less of a draw for visitors.

With each new attraction, Universal gradually moved away from the incorporation of the fourth wall convention, where cast and crew directly addressed guests. Instead of a behind-the-scenes filmmaking experience, the perspective shifted in the direction of putting guests in the middle of the action. The Wizarding World of Harry Potter – with the completion of Hogsmeade in 2010 and Diagon Alley in 2014 – accelerated this transition and reflects the park's modern strategy and approach to the guest experience.

Despite the evolution and growing emphasis being placed on the theme park aspect, some soundstages at Universal Studios Florida remained active. In 1999, Wheel of Fortune was relocated to the park for three days of filming, helping to promote the upcoming debut of Islands of Adventure. Nickelodeon returned temporarily in 2008 for the shooting of My Family's Got Guts. The 2010–11 season of RTL Group's Family Feud was filmed on site, coinciding with the show's debut of new host Steve Harvey, but the show was relocated in 2011 to Atlanta, Georgia. The revival of Howie Mandel's Deal or No Deal in 2018 was filmed in Soundstage 21 for CNBC. Local and national commercials were also shot at various soundstages.

Universal Studios Florida was built for an estimated $631 million, with 50% ownership in the hands of MCA Universal and 50% belonging to The Rank Organisation leisure company. While owned by Seagram, MCA Universal would again partner with The Rank Group (corporate successor to The Rank Organisation) a decade later in a major $2.5 billion expansion that would transform the park into a resort. The expansion led to the creation of Universal Orlando Resort with the addition of Islands of Adventure, Universal CityWalk, and several hotels. In 2000, The Rank Group sold its 50% stake to Blackstone Capital Partners for $275 million, who in turn sold it to NBCUniversal in 2011 for $3.165 billion, giving the company 100% ownership of the resort.

Slogans marketed by Universal Studios Florida over the years included: See the Stars. Ride the Movies. (1990–1998); No one makes believe like we do! (1990–1998); Ride the Movies (1998–2008); Jump into the Action (2008–2012); Experience The Movies (2012–2015) and Vacation Like You Mean It (2013–2019). The slogan was last changed in 2020 to "Let Yourself Woah" for the Universal Orlando Resort. It was eventually applied to all global tourist locations, including Universal Studios Hollywood.