In 1908, Okinawa Prefecture established the villages of Goeku and Misato. During the occupation of Japan, the U.S. military government established the city of Koza in Goeku. Misato merged into a neighboring community, and in 1946, again became separate, as did Goeku. On June 13, 1956, Goeku changed its name to the village of Koza; on July 1 of the same year it became a city.
The city of Okinawa was founded on April 1, 1974 with the merger of Koza and Misato.

The commercial center of the city lies along Route 330. It extends from Goya Crossing to Koza Crossing. The district extending from Goya to the gate of Kadena Air Base, and Chūō Park Avenue, has many visitors from the U.S. military, and many shops have signs in both Japanese and English. However, the development of large shopping centers in nearby communities has resulted in some decline in these areas.
A park in the southeastern portion of the city was the site of a National Sports Festival of Japan. Other city facilities include a baseball stadium where the Hiroshima Toyo Carp hold their spring training.
Kadena Air Base and neighboring military facilities lie on the boundaries with town of Kadena and the village of Onna. Okinawa also has boundaries with Uruma, Chatan, and Kitanakagusuku.