The boy allegedly incited another person to carry out an attack at an Anzac Day event with the aim of killing or seriously injuring people.
He is also accused of inciting another person to behead someone in Australia.
The court remanded the boy, who cannot be named for legal reasons, to youth detention.
The case was transferred to the Old Bailey, which will hold a preliminary hearing later.
The boy was charged after officers from the North West Counter Terrorism Unit and Lancashire Police executed a search of an address in Blackburn on 2 April.
Anzac Day is commemorated on 25 April in memory of Australian and New Zealand soldiers who have died in war.
A 14-year-old boy from Blackburn accused of inciting terrorism in Australia has appeared at Westminster Magistrates' Court.