The first records of motor racing activity at Croft date to the 1920s, but the site's modern history began during the Second World War, when an airfield named RAF Croft was constructed on the land. The airfield, also known as Croft Aerodrome, operated primarily as a bomber base and housed aircraft including Wellington, Lancaster, Whitley, Stirling, and Halifax bombers. It was home to several squadrons including 419 Squadron from Canada. After the end of hostilities the aerodrome was abandoned by the RAF, and some military-era structures remain on nearby farmland.
In 1947 a businessman named John Neasham acquired the lease and formed the Darlington and District Aero Club, but the club folded after five years. During the late 1940s and into the 1950s, Darlington and District Motor Club began holding race meetings using the runways and perimeter roads. In 1962, Bruce Ropner and fellow enthusiasts purchased half the venue at public auction, completing a track in July 1964. The first proper meeting in August 1964 drew a crowd estimated at between 30,000 and 50,000 people.
As circuit racing across Britain became increasingly concentrated on circuits in the south of England, Croft responded by beginning to host rallycross in December 1967. The events were televised live by ITV's World of Sport programme, giving the circuit national exposure. Circuit racing continued alongside the rallycross events until 1981, when declining profitability and the need for a complete resurfacing prompted a closure for circuit work. Local farmer George Shield agreed a lease to continue rallycross in partnership with Darlington and District Motor Club, and the venue was successfully developed for that format. Croft hosted FIA International Cup rallycross events in 1987 and 1990, and the 1994 British round of the FIA European Rallycross Championship.
The success and attention generated by rallycross led to a decision to reintroduce tarmac racing. In 1997, the circuit underwent a major transformation, being extended to its current length of 2.127 miles and receiving a new pits complex, paddock, control tower, and spectator facilities. British Touring Cars and British Superbikes arrived soon after. British Superbike Championship rounds continued until 2011, while the British Touring Car Championship remains a regular fixture.
The circuit became the subject of significant legal proceedings relating to noise. An official complaint by local residents was upheld in 2000, though Darlington Borough Council subsequently quashed it, with the circuit providing free tickets to nearby residents as a gesture. In April 2008 the circuit lost a further court case and the claimants were awarded compensation totalling £149,600. Both parties appealed, and in January 2009 the appeal court upheld the claimants' appeal and granted an injunction limiting the circuit to a maximum of 40 noisy racing days per year. The injunction, rather than damages, was the primary outcome sought by the claimants, and the circuit was able to continue operating its major race days without fundamental disruption.
Croft's connection to rallycross has been continuous since 1967, making it one of the longest-standing rallycross venues in Britain. After a period in 2021 when the management indicated it would not host rallying or rallycross the following season, stage rallying returned at the end of 2022 following announcements by local clubs. The British Rallycross Championship continues to use Croft as a regular venue. The circuit holds a distinctive place in British motorsport history both for the longevity of its rallycross programme and for its adaptability in moving between different motorsport formats across more than six decades of operation.