Florida Virtual School began as an initiative that sought to explore teaching models involving online learning.

During the 1996 school year, the Florida Department of Education awarded Orange and Alachua counties with $200,000 in "Break the Mold" grant funds.

[1] Julie Young was hired to head the project, having previously worked as an administrator and technology integration trainer in the Florida education system.

[2] By 2003, the school had increased to 24,000 half-credit enrollments (considered one segment or semester) and became part of the Florida Education Finance Program (FEFP).

[10][11] Funded through the Florida Education Finance Program (FEFP), full-time equivalent (FTE) students at FLVS are defined by course completion and performance – as opposed to "seat time" in a traditional brick-and-mortar school.

[3][12] During the spring of 2013, a new legislative funding model changed the FTE allotment received by FLVS for students who attend a brick-and-mortar public school.

The new funding formula provides FLVS a portion of the FTE for each public school student and is dependent upon the number of online courses taken.

[17] Florida statute 1003.428 requires all high school students to complete an online course prior to graduation.