Politicians and voters have been fiercely debating what his departure means for the country, as it tries to strike a debt deal with its creditors.
Many say they will miss his hardened stance against austerity, along with his maverick approach to politics.
Others are happy to see him go and believe Greece stands a better chance of securing a bailout agreement without him.
Belgium's Finance Minister, Johan Van Overtveldt, was one of the first prominent eurozone figures to react to the news. He told VRT radio that he would not miss Mr Varoufakis, whose behaviour and language he said had made negotiations difficult.
Others, including the BBC's political editor Nick Robinson, also suggested his strong choice of words in recent days may have been a catalyst for his departure.
Some voiced their disappointment at Mr Varoufakis's resignation, including writer Colette Browne who said his expertise was badly needed at the negotiating table.
Although his tenure as finance minister was relatively short, many found his unique approach to politics refreshing and he acquired a legion of fans.
Several others were less upset to see him go.  The Greek Analyst insisted Mr Varoufakis remained culpable for not securing a deal with Greece's creditors.
Channel 4's Economic Editor Paul Mason, who had asked Mr Varoufakis in an interview whether he would quit if the government lost, said he wished he could turn back the clock and ask: "Will you quit if you win?"
And while the majority pondered what his departure would mean for the Greek economy, others chose to focus on more pressing problems...
Yanis Varoufakis has always been a divisive figure - so it is unsurprising that his sudden decision to quit as Greece's finance minister has caused quite a stir.