The name "Gatwick" dates back to 1241, and was the name of a manor on the site of today's airport until the 19th century. It is derived from the Anglo-Saxon words gāt, 'goat', and wīc, 'dairy farm', i.e. 'goat farm'.
In 1891, a racecourse was created at Gatwick beside the London-Brighton railway. A railway station was built which included sidings for horse boxes. The course was popular and held both steeplechase and flat races. During the first world war the course hosted the Grand National.
In the 1920s land adjacent to the racecourse at Hunts Green Farm along Tinsley Green Lane was used as an aerodrome and licensed in August 1930. The Surrey Aero Club was formed in 1930 and used the old Hunts Green farmhouse as the first club house.
The Redwing Aircraft Company bought the aerodrome in 1932 and operated a flying school. The aerodrome was also used for pilots flying in to watch the races. In 1933, the aerodrome was sold to an investor who had designs to run it as an airport. The Air Ministry approved commercial flights from Gatwick the following year, and by 1936, scheduled flights were operating to several destinations on the Continent. A circular terminal called "The Beehive" was built, with a subway connecting it to Gatwick railway station so that passengers could travel from Victoria Station to the aircraft without stepping into the elements. Two fatal accidents in 1936 questioned the safety of the airport, it was also prone to fogs and waterlogged soil. The new subway regularly flooded after heavy rain. As a consequence of the conditions and the need for longer landing areas British Airways Ltd moved out to Croydon Airport in 1937. Gatwick changed back to private flying and also a contract to run a Royal Air Force flying training school. The airport also attracted aircraft repair companies.