Dyrehavsbakken, c. 1825 Dyrehavsbakken in 1840 Dyrehavsbakken in the 19th century

The origins of Dyrehavsbakken can be traced back to 1583 when Kirsten Piil discovered a natural spring in what is now known as Jægersborg Dyrehave or Dyrehaven, a large forest park north of Copenhagen.[1] Residents of Copenhagen were attracted to the spring water due to the poor water quality in central Copenhagen during this period. Many believed the natural spring to have curative properties, and therefore Piil's discovery drew large crowds, especially in the springtime.[1] These large crowds attracted entertainers and hawkers, whose presence are the origins of the amusement park today.

For a period the area that the spring was located on was not open to the public, due to it being on royal hunting grounds.[1] In 1669, King Frederick III decided to set up an animal park in the area, and his son Christian V expanded the park to 3–4 times its original size after becoming king in 1670. The area was named Jægersborg Dyrehave, its present name, in 1671. The park was off-limits to the public until 1756, under Frederick V.

Open to the general public once again, Dyrehavsbakken began to flourish. Entertainers, hawkers, and innkeepers returned to the area, and Bakken's growing reputation throughout Europe attracted other entertainers and artists, including Pjerrot, a clown who still is a fixture at the park today.[1] The park continued to grow even throughout the Napoleonic Wars. Its popularity was later aided by easier accessibility due to the development of steamships in 1820 and railroads in 1864, as well as publicity from poets and authors.[1]

As the popularity of Bakken grew, its conditions worsened. As a result, some of the business owners, or tent owners as they are still called today, created the Dyrehavsbakken Tent Owners' Association of 1885.[1] The association improved garbage collection, restroom facilities, water supply, publicity, and helped bring electricity to the park. The association is still around today, and all businesses operating in the park are required to join.

The entertainment options also improved over time. Cabarets such as Sansouci, which opened in 1866, and Bakkens Hvile, which opened in 1877, became increasingly popular.[1] The 20th century brought other ventures, such as the Circus Revue and automated moving rides.[1] Over time, more modern rides and entertainment options have been introduced.