Founded after the merger of two clubs, named Racing and Sport, Badajoz became a serious member of the Spanish League in 1931, when Francisco Fernandes Marquesta donated the team their first ground, named El Vivero. Subsequently playing most of their history between the third and second divisions, the club achieved a consistent stay in the latter level during the 1990s.
Never quite good enough to reach La Liga, 11 seasons in the second division came to an end in 2003, with relegation to Segunda División B, the new third level created in 1977. In 2006, Badajoz was saved from folding by the president of a junior club from the city, AD Cerro de Reyes, who replaced them in the third level, with Badajoz falling to the fourth.
On 1 July 2012 Badajoz was relegated to division four, due to a €70,000 debt contracted with its players during the 2011–12 season. being later disbanded through a liquidation process.
In 2020–21, the final season of Segunda B, Badajoz topped both of their groups to qualify for the new Primera División RFEF, but lost by one goal to Amorebieta for a place in the second tier in the play-off final.
CD Badajoz plays at Estadio Nuevo Vivero, which had a capacity of 15,200, expandable to 30,000. The club previously played at Estadio El Vivero in the east of the city, before moving a few kilometres south of the Guadiana in 1998 to the new facilities; the first match at the new grounds took place on 2 December 1998, in a friendly goalless match with neighbours CF Extremadura.