The area was started as a neighborhood called Modello in the late 19th century.
In November 1904, the area was incorporated as the town of Dania, because most of the 35 residents were farmers of Danish ancestry.
On January 4, 1926, Dania voted to annex itself to the City of Hollywood.
Formerly known as the "Tomato Capital of the World," once the city went from a farming settlement to an urban city, it soon took on the name "The Antique Capital of the South," due to its many antique shops in downtown Dania Beach, especially along Federal Highway, known as the city's "Antique Row".
After the September 1926 Miami hurricane decimated Hollywood's fortunes, most of Dania seceded from the City of Hollywood and reincorporated as a city. The areas that chose to remain part of the City of Hollywood caused Dania's current noncontinuous city boundaries.
On November 1998, Dania formally changed its name to Dania Beach. The name Dania is still commonly used to refer to the city.
In 2001, the city annexed several unincorporated areas of Broward County increasing the population by about 3,600 people.