It was historically used as a first-line treatment for hyperthyroidism, as the administration of pharmacologic amounts of iodine leads to temporary inhibition of iodine organification in the thyroid gland, caused by phenomena including the Wolff–Chaikoff effect and the Plummer effect. However it is not used to treat certain autoimmune causes of thyroid disease as iodine-induced blockade of iodine organification may result in hypothyroidism. They are not considered as a first line therapy because of possible induction of resistant hyperthyroidism but may be considered as an adjuvant therapy when used together with other hyperthyroidism medications.
Lugol's iodine has been used traditionally to replenish iodine deficiency. Because of its wide availability as a drinking-water decontaminant, and high content of potassium iodide, emergency use of it was at first recommended to the Polish government in 1986, after the Chernobyl disaster to replace and block any intake of radioactive , even though it was known to be a non-optimal agent, due to its somewhat toxic free-iodine content. Other sources state that pure potassium iodide solution in water (SSKI) was eventually used for most of the thyroid protection after this accident. There is "strong scientific evidence" for potassium iodide thyroid protection to help prevent thyroid cancer. Potassium iodide does not provide immediate protection but can be a component of a general strategy in a radiation emergency.
Historically, Lugols iodine solution has been widely available and used for a number of health problems with some precautions. Lugols is sometimes prescribed in a variety of alternative medical treatments. Only since the end of the Cold War has the compound become subject to national regulation in the English-speaking world.