Hill grew up in a household shaped by his father Graham's high-profile racing career and the comfortable living it provided. The sudden death of Graham Hill in an aircraft crash in November 1975 left 15-year-old Damon, his mother Bette, and two sisters in drastically reduced circumstances. He worked as a building labourer and motorcycle courier to fund his education and early racing activities.
Hill began motorsport on motorbikes in 1981, winning a 350cc clubman's championship at Brands Hatch. His mother persuaded him to switch to cars, and he took a racing course at the Winfield Racing School in France in 1983. He progressed through British Formula Ford in 1985, winning six races, and finished third in the 1988 British Formula Three championship after three seasons with Intersport. He contested Formula 3000 from 1989 to 1991 without winning, but impressed enough to earn a test driver role at Williams in 1991.
Hill broke into Grand Prix racing mid-1992 as a replacement for Giovanna Amati at the struggling Brabham team, qualifying for the British and Hungarian Grands Prix. The team collapsed after the Hungarian race, but Hill continued testing for Williams.
When Riccardo Patrese left Williams, Hill was promoted to the race team for 1993 alongside triple World Champion Alain Prost. He took his first career victory at the Hungarian Grand Prix, then won twice more — at Spa and Monza — to help clinch the Constructors' Championship for Williams. He finished third in the Drivers' Championship that year behind Prost and Ayrton Senna.
The 1994 season transformed Hill into a central figure in Formula One. After Senna's fatal accident at the San Marino Grand Prix, Hill became team leader after just one full season's experience. He fought back from a 66-point deficit against Michael Schumacher to take the title battle to the final race in Adelaide, where a controversial collision between the two — with Schumacher's damaged Benetton appearing to turn into Hill's Williams — gave Schumacher the championship by a single point. Hill's season earned him the BBC Sports Personality of the Year award.
In 1995, Schumacher and Hill clashed several times on track, with Schumacher winning the championship emphatically. Hill again claimed the BBC Sports Personality award at the year's end after winning the Australian Grand Prix.
In 1996, the Williams FW18 was clearly the fastest car on the grid. Hill won eight races and claimed the World Championship ahead of teammate Jacques Villeneuve, becoming the first son of a Formula One champion to also win the title. He equalled Ayrton Senna's record of starting every race in a season from the front row. Despite winning the title, Williams informed Hill before the season ended that he would not be retained, replacing him with Heinz-Harald Frentzen.
As World Champion, Hill had offers from McLaren, Ferrari, and Benetton but chose Arrows — a team that had never won a race in 20 years. The season was largely unsuccessful, though at the Hungarian Grand Prix, with Bridgestone tyres offering a competitive edge, Hill passed Schumacher on track and led late in the race before a hydraulic failure dropped him to second.
Hill joined Jordan for 1998, and at the Belgian Grand Prix in wet conditions at Spa he took the team's maiden Formula One victory, crossing the line ahead of teammate Ralf Schumacher. It was his first win since leaving Williams. He helped Jordan to fourth in the Constructors' Championship that year.
The 1999 season was difficult; Hill was outpaced by new teammate Frentzen and announced his retirement during the Canadian Grand Prix weekend. He remained with Jordan to see out the year, racing his final Grand Prix at Suzuka, where he retired with what he described as mental fatigue.
Hill became president of the British Racing Drivers' Club in 2006, succeeding Jackie Stewart. During his tenure he secured a 17-year contract for Silverstone to host the British Grand Prix, enabling significant circuit renovation. He stepped down in 2011, succeeded by Derek Warwick.
From 2012, Hill worked as a pundit for Sky Sports F1, providing expert analysis during free practice sessions across 13 seasons before resigning after the 2024 Sao Paulo Grand Prix. In March 2025 he returned to broadcasting with BBC radio coverage.
Hill's 1994 title battle with Schumacher remains one of Formula One's most contentious endings. His 1996 championship — won in only his fifth full season and in the face of adversity at Williams — established him as a worthy successor to his father's legacy. His achievement of winning the title as the son of a champion stands as one of the sport's most remarkable dynasties.