The circuit was built in 1999 to replace Valencia's need for a permanent, purpose-built racing facility. It was named to honour Ricardo Tormo (1952–1998), a Valencia-born rider who won two world championships in the 50cc class during the late 1970s. The track has a main straight of 0.876 km and a spectator capacity of 165,000.
Its layout is characterised by tight, low-speed corners and limited high-speed sections, making it technically demanding for both motorcycles and cars but limiting its appeal for overtaking in some formulae. The pit complex and facilities were built to FIM and FIA standards to allow it to host events across both motorcycle and automobile disciplines from the outset.
The circuit's primary fixture is the MotoGP Valencian Community Grand Prix, held each November as the traditional season finale of the MotoGP World Championship. Because it closes the championship calendar, the race has frequently served as the setting for title celebrations or final standings resolutions, giving it particular significance in MotoGP history.
Beyond MotoGP, the circuit hosted the FIA GT Championship in 2000 and 2004, and the World Touring Car Championship ran at Valencia from 2005 to 2012. The European Le Mans Series visited in 2007. The DTM (Deutsche Tourenwagen Masters) held rounds there from 2010 to 2012. The GP2 Series, now the FIA Formula 2 Championship, competed at the circuit in 2006 and 2007. The GP3 Series held rounds there including a standalone event in 2013.
Formula E has used the circuit as its primary pre-season testing venue since the 2017–18 season, taking over that role from Donington Park. In an exceptional circumstance during the 2020–21 Formula E World Championship season, the circuit stepped in as a race venue, hosting the Valencia ePrix on 24 April 2021 after the Paris ePrix was cancelled due to the COVID-19 pandemic. This was notable as the first ePrix held on a permanent racing circuit, with a temporary chicane installed on the start-finish straight to adapt the layout for the event. A flooding emergency in October 2024 forced pre-season Formula E testing to be relocated to the Circuito del Jarama near Madrid. The circuit also hosted the third edition of the FIA Motorsport Games in October 2024.
The Superbike World Championship and Supersport World Championship both competed at the circuit from 2000 to 2010. The NASCAR Euro Series has held its season-opening round at Valencia since 2014. The circuit has also served as a pre-season testing venue for various junior formulae, including the GP3 Series until 2017 and the FIA Formula 3 Championship thereafter.
Circuit Ricardo Tormo has appeared in numerous sim racing and video game titles. It was recreated in Tourist Trophy and Gran Turismo PSP, as well as in Alfa Romeo Racing Italiano, GTR Evolution, and rFactor. As a MotoGP round host since 1999, the circuit has featured in every official MotoGP video game since that date and in the SBK series from 2006 to 2013. Assetto Corsa Competizione added a recreation of the track in 2023, its most recent prominent appearance in a simulation title.
The track runs in a roughly anti-clockwise direction and offers multiple layout configurations. Its tight, slow-speed character rewards technical precision over outright top speed. Anthony Davidson holds the unofficial absolute lap record at the circuit, set in 2006 while testing a Honda RA106 Formula 1 car, with a time of 1:08.540 seconds.