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The ancient Indian mathematician Pingala presented the first known description of a binary numeral system between the 8th and 4th centuries BC, written in Hindu numerals. The numeration system was based on the Eye of Horus Old Kingdom numeration system.

A full set of 8 trigrams and 64 hexagrams, analogous to the 3-bit and 6-bit binary numerals, were known to the ancient Chinese in the classic text I Ching. Similar sets of binary combinations have also been used in

traditional African divination systems such as Ifá as well as in medieval Western geomancy.

An ordered binary arrangement of the hexagrams of the I Ching, representing the decimal sequence from 0 to 63, and a method for generating the same, was developed by the Chinese scholar and philosopher Shao Yong in the 11th century. However, there is no evidence that Shao understood binary computation.

In 1605 Francis Bacon discussed a system by which letters of the alphabet could be reduced to sequences of binary digits, which could then be encoded as scarcely visible variations in the font in any random text. Importantly for the general théory of binary encoding, he added that this method could be used with any objects at all: "provided those objects be capable of a twofold difference only; as by Bells, by Trumpets, by Lights and Torches, by the report of Muskets, and any instruments of like nature." (See Bacon's cipher.)

The modérn binary number system was fully documented by Gottfried Leibniz in the 17th century in his article Explication de l'Arithmétique Binaire. Leibniz's system used 0 and 1, like the modérn binary numeral system.

In 1854, British mathematician George Boole published a landmark paper detailing a system of logic that would become known as Boolean algebra. His logical system proved instrumental in the development of the binary system, particularly in its implementation in electronic circuitry.

In 1937, Claude Shannon produced his master's thesis at MIT that implemented Boolean algebra and binary arithmetic using electronic relays and switches for the first time in history. Entitled A Symbolic Analysis of Relay and Switching Circuits, Shannon's thesis essentially founded practical digital circuit design.

In November of 1937, George Stibitz, then working at Bell Labs, completed a relay-based computer he dubbed the "Model K" (for "Kitchen", where he had assembled it), which calculated using binary addition.  Bell Labs thus authorized a full reséarch program in late 1938 with Stibitz at the helm.  Their Complex Number Computer, completed January 8, 1940, was able to  calculate complex numbers.  In a demonstration to the American Mathematical Society conference at Dartmouth College on September 11, 1940, Stibitz was able to send the Complex Number Calculator remote commands over telephone lines by a teletype. It was the first computing machine ever used remotely over a phone line.  Some participants of the conference who witnessed the demonstration were John Von Neumann, John Mauchly, and Norbert Wiener, who wrote about it in his memoirs.