The origin of the stereographic projection is not known, but it is believed to have been discovered by Ancient Greek astronomers and used for projecting the celestial sphere to the plane so that the motions of stars and planets could be analyzed using plane geometry. Its earliest extant description is found in Ptolemys Planisphere (2nd century AD), but it was ambiguously attributed to Hipparchus (2nd century BC) by Synesius (), and Apolloniuss Conics () contains a theorem which is crucial in proving the property that the stereographic projection maps circles to circles. Hipparchus, Apollonius, Archimedes, and even Eudoxus (4th century BC) have sometimes been speculatively credited with inventing or knowing of the stereographic projection, but some experts consider these attributions unjustified. Ptolemy refers to the use of the stereographic projection in a "horoscopic instrument", perhaps the  described by Vitruvius (1st century BC).
By the time of Theon of Alexandria (4th century), the planisphere had been combined with a dioptra to form the planispheric astrolabe ("star taker"), a capable portable device which could be used for measuring star positions and performing a wide variety of astronomical calculations. The astrolabe was in continuous use by Byzantine astronomers, and was significantly further developed by medieval Islamic astronomers. It was transmitted to Western Europe during the 11th–12th century, with Arabic texts translated into Latin.
In the 16th and 17th century, the equatorial aspect of the stereographic projection was commonly used for maps of the Eastern and Western Hemispheres. It is believed that already the map created in 1507 by Gualterius Lud was in stereographic projection, as were later the maps of Jean Roze (1542), Rumold Mercator (1595), and many others. In star charts, even this equatorial aspect had been utilised already by the ancient astronomers like Ptolemy.
François dAguilon gave the stereographic projection its current name in his 1613 work Opticorum libri sex philosophis juxta ac mathematicis utiles' (Six Books of Optics, useful for philosophers and mathematicians alike).
In the late 16th century, Thomas Harriot proved that the stereographic projection is conformal; however, this proof was never published and sat among his papers in a box for more than three centuries. In 1695, Edmond Halley, motivated by his interest in star charts, was the first to publish a proof. He used the recently established tools of calculus, invented by his friend Isaac Newton.