The ancient name of the city was Caprulae (possibly because of the wild goats that grazed in this area, or in honour of pagan goddess Capris); Caorle was founded in the 1st century BC by Romans. Many archeological findings confirm this attribution, for instance the sacrificial altar called Ara Licovia (Licovian Altar, from the Roman Licovi family), today housed in the cathedral.
Caorle gained importance when people from Concordia Sagittaria arrived as refugees during the Barbarian Invasions. In that period was built a Paleo-Christian church, some remains of which are today kept in the cathedral's museum. In the 11th century was built the cathedral we see today, once the seat of a Bishopric. During the following centuries, Caorle became one of the nine important cities of the Republic of Venice; evidence to that effect are the many Istrian flagstones which compose some monuments in the city, and also the ancient structure of the city with bridge and canals, like a little Venice. At the end of the Republic of Venice, with the Napoleonic invasions, Caorle went into decline; the diocese was moved to Chioggia and Caorle was attached to the Patriarchate of Venice; the town is however technically is still a diocese, and therefore an ecclesiastical titular see.
Caorle was an important strategic location during World War I, until the Italian Army started its counteroffensive from the Piave.
Nowaday Caorle is a pretty touristic village.