Disney spent five years working with writers, child-development experts, and storytelling consultants to create a show that would avoid stereotypes of evil stepmothers and princesses needing rescue, while also being designed to spawn merchandise.

Craig Gerber, who was writing for Disney's Tinker Bell film series, was approached by Disney Junior's Nancy Kanter to create a television series about princesses aimed at children aged two to seven.

Gerber based the concept partly on his own childhood living with his single mother, her boyfriend, and the boyfriend's daughter, whom he considered a de facto stepsister; this experience led him to the idea of a girl marrying into royalty rather than being born a princess.

Gerber said he hoped the show could serve as a 'magic mirror' for his son, who often emulated fantasy characters he had little in common with, which inspired grounding the fantasy setting in relatable real-world situations.

Composer Kevin Kliesch was recommended to Disney Channel by Tim Mertens, the editor of Tangled (2010); Kliesch was typically given only one to two weeks to write the music, requiring him to compose at least three minutes of score per day to meet deadlines.

The show's score deliberately drew on the rich orchestral sound of earlier Disney films to avoid 'typical cartoon music', while original songs incorporated Motown, jazz, hip-hop, and Broadway influences instead of typical children's music sounds.

The pilot special 'Once Upon a Princess' drew 8.17 million viewers, making it the number one cable TV telecast of all time for kids and girls aged 2–5, and setting records for total preschool cable viewership and adults 18–49.

By March 2013, Sofia the First had become cable television's most-viewed preschool program, with The New York Times describing it as 'a monster-size new hit'.

During a 2012 press tour, a producer described Sofia as Latina, sparking controversy; Disney later clarified that Sofia is a fairytale character with a mixed fictional heritage, with her mother from the fictional Galdiz (based on Spain) and her father from the fictional Freezenburg (based on Scandinavia).

The controversy over Sofia's ethnicity partly inspired Craig Gerber to create the spin-off series Elena of Avalor, featuring an explicitly Latina princess, who was first introduced in the Sofia the First special 'Elena and the Secret of Avalor'.

In 2013, merchandise related to Sofia the First and two other Disney Junior shows, Jake and the Neverland Pirates and Doc McStuffins, generated global retail sales of $1.8 billion.