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Burnley FC Girls and Ladies was founded in 1995 by John Lister, just too late for hometown girl and former England international goalkeeper Rachel Brown-Finnis to join as a child. The club initially consisted of 15 ladies, who trained in the old sports barn at Turf Moor and played their home games at the club's training facility at Gawthorpe. Following the demise of the Lancashire League, the team joined the North West Women's Regional League.

The club established a junior set-up from the outset. An Under 10s side was formed by Grahame Meeks and Peter Cooper shortly after the first-team was founded. The youth set-up was grassroots for many years, to encourage players of all ages and abilities to take-up football, including England youth international Naomi Hartley.

At the end of the 2016–17 season, the management and operation of the club was transferred to Burnley FC in the Community. The following season, in the 2017–18 FA Women's Cup, the team won three preliminary round games to qualify for the first round proper for the first time in their history. Burnley reached the third round, where they were eliminated by third-tier side Cardiff City. Burnley were promoted to the FA Women's National League Division One North at the end of the same season. In 2018, the club was rebranded as Burnley FC Women, and for the first time players of all ages were required to negotiate trials to represent the club. In the 2018–19 season, the team won the league title and were promoted to the FA Women's National League North, the third tier in English women's football.

In February 2021, it was announced that the women's team would be integrated into Burnley F.C., as the club's new American owner Alan Pace sought to turn the women's team professional. Several months later, Burnley became the first British team to stream their home games on the video-sharing app TikTok, with the club hitting one million views on TikTok live in April 2023. Burnley Women played their first game at Turf Moor on 30 April 2023, winning 2–1 against Liverpool Feds in front of almost 3,000 supporters. It was the last game of the 2022–23 league season, with Burnley finishing third in the FA Women's National League North.