When opened as part of the Metro Tunnel project, State Library will be an underground premium station, featuring an island platform with two faces.

The station will feature two street-level entrances on La Trobe and Franklin Streets and is named for the nearby State Library of Victoria.

In December 2008, the proposal for a new underground rail corridor running north-south through the Melbourne CBD was incorporated into the Brumby Ministry's Victorian Transport Plan after originally featuring in a report from Rod Eddington.

The need for a new rail corridor and stations through the CBD was identified in an effort to reduce congestion on the City Loop, enabling more frequent and reliable services across Melbourne's railway network.

In February 2015 the proposal was revived by the newly elected Andrews Ministry with construction to commence in 2018 and the tunnel and stations planned to open in 2026.

[23] Like Town Hall station, State Library is designed using a unique "trinocular" construction method involving three large, overlapping mined tunnels with vaulted ceilings.

[28] The artwork will be a collage of Mellor's photography and historical portraits of Wurundjeri Woi Wurrung women sourced from the nearby State Library of Victoria.

[citation needed] Updated precinct designs for State Library were released in 2022, which included the installation of separated bike lanes on Franklin Street.

[31] In July 2023, plans were released by the City of Melbourne for a redesign of Franklin Street between the northern entrance to State Library and a new public square at the Queen Victoria Market.