The ancient name of the city was Caprulae (possibly because of the wild goats that grazed in this area, or in honour of pagan goddess Capris); Caorle was founded in the 1st century BC by Romans. Many archeological findings confirm this attribution, for instance the sacrificial altar called Ara Licovia (Licovian Altar, from the Roman Licovi family), today housed in the cathedral. A safe zone between the estuaries of the Livenza (Latin: Liquentia) and Lemene (Latin: Romantinum) rivers, Caorle gained importance when people from Concordia Sagittaria arrived as refugees during the Barbarian Invasions. In that period was built a Paleo-Christian church, some remains of which are today kept in the cathedral's museum. In the 11th century the cathedral was built, which still stands today. It was once the seat of a bishopric. During the following centuries, Caorle became one of the nine important cities of the Republic of Venice; evidence to that effect are the many Istrian flagstones which compose some monuments in the city, and also the ancient structure of the city with bridge and canals, like a little Venice. At the end of the Republic of Venice, with the Napoleonic invasions, Caorle went into decline; the last diocesan bishop of the diocese was moved in 1807 to Chioggia and the territory of the diocese was attached in 1818 to the Patriarchate of Venice. No longer a residential bishopric, Caorle/Caprulae is today listed by the Catholic Church as a titular see.

Caorle was an important strategic location during World War I, until the Italian Army started its counteroffensive from the Piave.

Since the beginning of the 20th century the territory around Caorle has been deeply modified. Most of the woods of the "Selva Lupanica" were cut to give room to fields for cultivation, rivers were embanked, and marshes were reclaimed. This brought a landscape of wide flat areas, with no trees even along the rivers course. Along the coast, sedimentation and erosion constantly modify the scenery.

The landscape is still rather wild, with changing sandbanks and the fishing valleys.