[1] Work on plans for the school started in 2016[2] and the organization was formally established on 11 February 2017.

[6] In February 2019, Ingibjörg Guðmundsdóttir was hired to replace Helena as the schools new director from 15 June 2019.

[8] In 2021, the school announced the building of a new campus that would be the first new houses built in Flateyri since 1997.

[9][10] Ingibjörg Guðmundsdóttir is the current director of Lýðskólinn á Flateyri, succeeding Helena Jónsdóttir in June 2019.

The school operates both a dormitory and cabins in Flateyri for student housing.