The band, named after Snoopy's "Red Baron" strips, began in 1981, in Rio de Janeiro, as a literal garage band, when Maurício Barros and Guto Goffi, both studying at Imaculada Conceição High School, got together to play Led Zeppelin and The Rolling Stones at the former's parents' house.

One candidate was singer and guitarist Léo Jaime from Goiás, who was turned down by the band, because they considered his vocal style "too soft" for their taste.

They played in a few concerts in Rio de Janeiro and São Paulo and returned to the studio for a month to record their second album, Barão Vermelho 2, which was released in 1983 and which includes the song "Pro Dia Nascer Feliz".

Barão only gained recognition after Caetano Veloso called Cazuza the greatest poet of his generation and played a cover of "Todo Amor Que Houver Nessa Vida", and Ney Matogrosso recorded "Pro Dia Nascer Feliz".

The album was a huge success on the radio, guaranteeing Barão Vermelho the opportunity to open for Rod Stewart in Brazil.

The album included rare and previously unreleased tracks such as "Eclipse Oculto" and "Eu Queria Ter Uma Bomba".

This same year, Barão recorded and released Na Calada da Noite, showing their acoustic side.

This album included the song "O Poeta está Vivo" – an allusion to Cazuza, who died a few months earlier due to complications caused by the AIDS virus.

In 1995, the band opened for The Rolling Stones in the Brazilian Voodoo Lounge shows, and in the following year released an album of covers, Álbum, with the most successful song being a version of Bezerra da Silva's "Malandragem Dá Um Tempo".