Livonia was initially inhabited by Baltic tribes engaging in agriculture and trade. In the 12th century German crusaders introduced Christianity to Livonia leading to its dominance in the region. This period also saw the organization of Livonia into a loose union of semi-independent states under German control, known as the Livonian Confederation. During the 16th century Livonia became a battleground due to conflicts between Sweden, Poland-Lithuania and Russia, resulting in devastation and population decline. In the 18th century Livonia was fully incorporated into the Russian Empire, experiencing both periods of Russification and economic development.

In the 20th century Livonia's territory was divided between Latvia and Estonia following World War I, with subsequent turmoil during World War II and Soviet occupation. Today the historical heritage of Livonia is celebrated by both Latvia and Estonia.