It was named in memory of Lotus D. Coffman, President of the University of Minnesota between 1920 and 1938, who first imagined the campus having one, united student union.

In May of 1972, the largest demonstrations at the university took place in response to President Richard Nixon's announcement that the United States would begin to blockade and mine North Vietnam's harbors.

Much of the original Streamline Moderne aspects were eliminated; a third of the back terrace was enclosed by angled glass;[3] the main longue was reduced from two stories to one, in order to provide space for student organizations; the game and billiards lounge relocated to the basement, later becoming known as "Goldy's Gameroom", while a theater/lecture hall was built in its place; and the doors between the front pillars were replaced with large, deep-cut apron windows containing angular green-house styled roofs,[4] requiring students to use the side doors to enter the building.

[4] While the renovation added 25,000 feet of space overall[3] and raised the number of students it could accommodate to 42,000,[5] its design made it harder for large groups to assemble in the building, as a direct response to the protests.

[3] The lower floors were greatly expanded to include the main University of Minnesota Bookstore, food vendors, offices, lounges, and the glass "Cube" which sits adjacent to Washington Avenue.

[3] That same year, a large statue of the university's mascot, Goldy Gopher, was unveiled in front of Coffman, which has since become a popular spot for students to take pictures at.

[8][9] In 2019, after 16 months of study, a university task force recommended removing Lotus Coffman's name from the building due to his racist and anti-Semitic policies.

[10] According to the December 2021 update to the Twin Cities Campus Plan, approved by the Board of Regents, Coffman is set to receive a third major renovation to meet the current needs of the student population.

The fourth floor is home to the Campus Club, a member-based dining and event venue primarily used by faculty and alumni.