The station is adjacent to and named for the former Wood Island Park, a once heavily used recreational area for East Boston residents.

It was built in 1952, replacing a pair of Boston, Revere Beach and Lynn Railroad stations that served the area.

[3] Located a short walk from Bennington Street, it lost much of its ridership to East Boston Tunnel trolleys, and was closed significantly sooner than the rest of the BRB&L.

[6] The extension to Airport, Day Square, and Orient Heights opened on January 5, 1952, with further completion to Wonderland station in 1954.

In 1988, the MBTA began planning the Blue Line Modernization Project, which included accessibility modifications as well as platform extensions to accommodate 6-car trains.

[10] In 1989, the MBTA awarded design contracts for modernization and platform lengthening (to allow six-car trains) at nine Blue Line stations, including Wood Island.

[12] On June 25, 1994, the line was cut back to Orient Heights at all times to permit reconstruction of the outer stations; Wood Island remained open during construction.

[1][17] A 2024 city plan calls for reuse of an unused stub of Frankfort Street as an extension of the station busway for route 120 buses.