The area of Yūki was an important center for the production of cotton, flax and woven goods from the Nara period.

This subsequently became the center of Yūki Domain which was ruled by 10 generations of a junior branch of the Mizuno clan under the Tokugawa shogunate in the Edo period.

On March 15, 1954, Yūki merged with the neighboring villages of Yamakawa, Kinugawa, Egawa and Kamiyamakawa and was elevated to city status.

Yūki has a mayor-council form of government with a directly elected mayor and a unicameral city council of 18 members.

In terms of national politics, the city is part of Ibaraki 7th district of the lower house of the Diet of Japan.