York Layerthorpe opened on 21 July 1913,[1] and served as the northern terminus of the Derwent Valley Light Railway, immediately to the east of that line's connection to the existing Foss Islands Branch Line and thence to the North Eastern Railway's York to Scarborough Line.

Traffic through the station was predominantly agricultural freight and local industries along the route of the DVLR, although passenger services did run on the line from 1913 to 1926.

[6] A single siding at the station serving an oil depot remained in use until 1987.

The siding was lifted along with the Foss Island branch when traffic from Rowntrees chocolate factory, at the other end of the branch, switched to road transport in 1988.

The section of track between York Layerthorpe and Osbaldwick is now a foot and cycle path.