The station, located 10 miles 30 chains (16.7 km) north of Scarborough Central and 11 miles 22 chains (18.1 km) south of Whitby West Cliff, was opened on 16 July 1885 and was originally named Peak as it was situated at the highest point on the line at 631 feet (192 m) above sea level.

[4][5] The planned building boom never materialised and just before the First World War, the company went bankrupt and the scheme was abandoned.

The tunnel was problematic for drivers ascending from Fyling Hall as it was open to the sea and trains often stalled inside it.

[10] The 1956 Handbook of Stations listed Ravenscar as being able to handle general goods only, and there was no crane at the yard.

[11] Two camping coaches were positioned here by the North Eastern Region from 1954 to 1964[12][13] Freight traffic ended on 4 May 1964 and the station closed completely on 8 March 1965.