Founded in 1970 it plays in Tercera Federación – Group 12, holding home games at the Ciudad Deportiva de Lanzarote (sports city), a 6,000-seat stadium which is shared with CD Orientación Marítima.

In its first competitive season, 1970–71, the team won the Segunda Regional Insular championship (second regional division), and for many years battled through local and Canarian leagues until making its debuts in Tercera División, in 1980; the first campaign ended with a fifth place, and it was also here the club had its first taste of the Copa del Rey – after a 0–0 home draw with neighbours UD Las Palmas, Lanzarote was ripped apart 0–5 in the second leg.

In a cup match against also-islanders CD Tenerife, local legend Maciot bagged a hat-trick in a 5–1 shock win, in front of a 5,000 home crowd.

The reward for this feat was a dream clash with La Liga powerhouse Real Madrid, led by Vicente del Bosque and with the likes of Raúl González, Steve McManaman, Roberto Carlos, Luís Figo and Zinedine Zidane on board: after the favorite's early lead, part-time waiter Oscar Vladamir equalized and secured his place in local football history, but the club eventually lost it 1–3.

In 2004–05's Spanish Cup, Lanzarote defeated Héctor Cúper's RCD Mallorca's 2–1,[3] followed by another downing of a top level team, Athletic Bilbao also 2–1.