Located in the Chinatown section of the larger Penn Quarter neighborhood, the arena sits atop the Gallery Place rapid transit station of the Washington Metro.

[13] Capital Landmark Associates was selected in 1979 to develop the site with a planned mixed-use complex including retail, offices, apartments, and a hotel.

The teams experienced subpar attendance because the location was inconvenient for both Washington and Baltimore residents, and their arena, though only 20 years old, was not up to the standards of other NBA and NHL venues.

[21] However, a competing proposal soon emerged, when Robert Johnson, head of Black Entertainment Television, offered to build the arena with mostly private financing.

[29] On December 2, 1997, the arena held its first event, a game between the Wizards and the Seattle SuperSonics, with President Bill Clinton in attendance.

[37] The arena was noted for building spectator seats vertically rather than out, creating better views for all attending albeit with limited leg room in the upper levels, as well as spacious quarters for players and coaches with advanced competitive research technology.

[38] The arena concourse featured multimedia arenaNet stations where fans could check scores, watch highlights, and send digital postcards over email.

[42] In 1999, a group led by technology executive Ted Leonsis bought a 36% stake in Pollin's holdings, including the MCI Center, as well as full ownership of the Capitals.

[57][58] In July 2020, bookmaker William Hill opened a sportsbook at the arena, following the 2018 legalization of sports betting in Washington.

[61] Under the revised plan, Capital One Arena would have remained in use as a concert and event venue during the NBA and NHL seasons, and also become the permanent home of Monumental's Women's National Basketball Association (WNBA) team, the Washington Mystics.

"[63] The deal will see a massive renovation to the arena which will be completed by 2028 in six phases, changing the exterior and interior that will include new technology and improved fan experiences.

$515 million is coming from the District of Columbia government, while the rest is being paid for by Monumental Sports and Entertainment, which owns the teams.

The Red Wings hoisted the namesake Stanley Cup in the arena on June 16, 1998, after winning game four by a score of 4–1.

On April 5, 2008, the Capitals won the Southeast Division in the last game of the regular season, after beating the Florida Panthers 3–1.

The Capitals had their Stanley Cup banner installation ceremony in the arena before their first game of the next season, which took place on October 3, 2018.

The arena hosted the 2009 "Frozen Four", the final round of the 2009 NCAA Division I men's ice hockey tournament Boston University took Miami OH in overtime 4–3.

The Capital Hockey Classic aims to capture attention, especially since it occurs just two days before the Army-Navy game at the nearby Commanders Field.

In 2024, the Mystics relocated their June 7 and September 19 games against the Indiana Fever to Capital One Arena, citing the demand of tickets as a result of the rising popularity of Caitlin Clark.

[70] Most notably the 2005–06 George Mason Patriots men's basketball team from nearby Fairfax, Virginia advanced to the Final Four in the arena.

Among the musical performers, cultural figures, and entertainment shows that have performed at the arena are Olivia Rodrigo, Duran Duran, Ricardo Arjona, Kylie Minogue, Janet Jackson, Mariah Carey, Muse, Paul McCartney, Queen, U2, Iron Maiden, Shakira, Lady Gaga, Madonna, Britney Spears, The Three Tenors, Drake, Barbra Streisand, Bon Jovi, Prince, Tim McGraw, Faith Hill, Beyoncé, the Dalai Lama, Tina Turner, Keith Urban, Paul Simon, Sting, The Police, Taylor Swift, Tame Impala, Coldplay, Tyler, the Creator, Elton John, Usher, Green Day, Blink-182, The Who, Bad Bunny, Billie Eilish, Dua Lipa, Harry Styles, Trans-Siberian Orchestra, Cage the Elephant, Monster Jam, Disney on Ice, K-POP groups Ateez, Seventeen, NCT Dream, Jonas Brothers, AJR, IU, Howard University graduation speech by U.S. president Joe Biden, and a Michelle Obama book tour event.

[76] When the arena opened, there was concern that it would lead to the displacement of Chinese businesses and culture in the area that is the city's Chinatown.

[77] The surrounding area has indeed been dramatically gentrified, and most of the Chinese residents and businesses who lived and operated in the neighborhood when the arena first opened have been displaced because of the spike in real estate prices.

[78] A similar stadium project proposed for Philadelphia's Chinatown sparked comparisons in 2023 to the Capital One Arena, and has caused significant community backlash.

[79] In December 2007, then-Capitals captain Chris Clark stated that he believed the arena had the worst ice in the NHL.