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The original inhabitants of the area now known as Chico were the Mechoopda Maidu Native Americans.
The City of Chico was founded in 1860 by John Bidwell, a member of one of the first wagon trains to reach California in 1843. During the American Civil War, Camp Bidwell (named for John Bidwell, by then a Brigadier General of the California Militia), was established a mile outside Chico, by Lt. Col. A. E. Hooker with a company of cavalry and two of infantry, on August 26, 1863. By early 1865 it was being referred to as Camp Chico when a post called Camp Bidwell was established in northeast California, later to be Fort Bidwell.
The city became incorporated January 8, 1872.

Chico is at the northeast edge of the Sacramento Valley, one of the richest agricultural areas in the world. The Sierra Nevada mountains lie to the east, with Chico’s city limits venturing several miles into the foothills. To the west, the Sacramento River lies 5 miles (8 km) from the city limits.
Chico sits on the Sacramento Valley floor close to the foothills of the Cascade Range to the north and the Sierra Nevada range to the south. Big Chico Creek is the demarcation line between the ranges. The city’s terrain is generally flat with increasingly hilly terrain beginning at the eastern city limits.
According to the United States Census Bureau, the city has a total area of 27.8 square miles (72 km2), of which 27.7 square miles (72 km2) is land and 0.04% is water.
The city is bisected by Bidwell Park, which runs 5 miles (8 km) from the flat city center deep into the foothills.
The city is also traversed by two creeks and a flood channel, which feeds the Sacramento River. They are named Big Chico Creek, Little Chico Creek, and Lindo Channel (also known as Sandy Gulch, locally).

Chico and the Sacramento Valley have a typically Mediterranean climate (Köppen Csa). Temperatures can rise well above 100 °F (38 °C) in the summer. Chico is one of the top metropolitan areas in the nation for number of clear days. Winters are fairly mild and wet, with the most rainfall coming in January. July is usually the warmest month, with an average high temperature of 94 °F (34 °C) and an average low temperature of 61 °F (16 °C). January is the coolest month, with an average high temperature of 55 °F (13 °C) and an average low temperature of 35 °F (2 °C). The average annual rainfall is 27 inches (690 mm). Tule fog is often present during the autumn and winter months.

The 2010 United States Census reported that Chico had a population of 86,187. The population density was 2,604.2 people per square mile (1,005.5/km²). The racial makeup of Chico was 69,606 (80.8%) White, 1,771 (2.1%) African American, 1,167 (1.4%) Native American, 3,656 (4.2%) Asian, 210 (0.2%) Pacific Islander, 5,437 (6.3%) from other races, and 4,340 (5.0%) from two or more races. Hispanic or Latino of any race were 13,315 persons (15.4%).
The Census reported that 83,009 people (96.3% of the population) lived in households, 2,591 (3.0%) lived in non-institutionalized group quarters, and 587 (0.7%) were institutionalized.
There were 34,805 households, out of which 9,222 (26.5%) had children under the age of 18 living in them, 11,745 (33.7%) were heterosexual living together, 3,975 (11.4%) had a female householder with no husband present, 1,729 (5.0%) had a male householder with no wife present. There were 2,806 (8.1%) unmarried heterosexual partnerships, and 295 (0.8%) homosexual married couples or partnerships. 10,419 households (29.9%) were made up of individuals and 3,100 (8.9%) had someone living alone who was 65 years of age or older. The average household size was 2.38. There were 17,449 families (50.1% of all households); the average family size was 2.97.
The population was spread out with 16,771 people (19.5%) under the age of 18, 20,622 people (23.9%) aged 18 to 24, 22,360 people (25.9%) aged 25 to 44, 17,256 people (20.0%) aged 45 to 64, and 9,178 people (10.6%) who were 65 years of age or older. The median age was 28.6 years. For every 100 females there were 98.2 males. For every 100 females age 18 and over there were 96.8 males.
There were 37,050 housing units at an average density of 1,119.5 per square mile (432.2/km²), of which 14,878 (42.7%) were owner-occupied, and 19,927 (57.3%) were occupied by renters. The homeowner vacancy rate was 2.0%; the rental vacancy rate was 5.8%. 36,008 people (41.8% of the population) lived in owner-occupied housing units and 47,001 people (54.5%) lived in rental housing units.