It was designed during the latter half of the 1930s to fulfil a request by the German flag carrier Deutsche Luft Hansa for a suitable aircraft to carry long distance airmail between Germany and Japan.

At the behest of the Reichsluftfahrtministerium (RLM), a pair of He 116Bs, which were specially adapted for the long-range reconnaissance and bomber missions (including the use of a fully glazed nose similar to the Heinkel He 111) were created.

Additionally, a single He 116R, featuring an enlarged wing, increased fuel tankage in the fuselage, and four Hirth HM 508H engines that provided superior fuel economy at lower rpms, was built for a successful record-setting flight, covering an unrefueled distance of 10,000 km (6,200 mi; 5,400 nmi) at an average speed of 214 km/h (133 mph; 116 kn), conducted on 30 June 1938.

Work on what would become the He 116 commenced in response to a request made in 1936 by the German flag carrier Deutsche Luft Hansa for a new long-distance mail plane.

The Günter brothers proposed to adapt their basic He 70 Blitz airframe to carry four of these engines to provide enough power for the massive fuel load.

On 30 June 1938, this unique aircraft successfully covered an unrefueled distance of 10,000 km (6,200 mi; 5,400 nmi) at an average speed of 214 km/h (133 mph; 116 kn), setting a new international record in the process.