The establishment of the UNY Campus in Gunungkidul was a joint idea between the Rector of UNY, Prof. Dr. Sutrisno Wibawa, M. Pd., and the Regent of Gunungkidul, Mrs. Hj. Badingah, S.Sos. in Kepuh Hamlet, Pacarejo Village, Semanu Subdistrict, Gunungkidul Regency. The ground breaking or laying of the first stone was held on Friday, February 21, 2019. Present at the event were the Rector of UNY, Vice Rectors I, II, III, and IV, the Regent of Gunungkidul, the Chairman of the Regional People's Representative Council (DPRD) of Gunungkidul Regency, and all Regional Leaders. The construction of the building began immediately with four floors, accompanied by a front yard and a vehicle parking area. The building construction took one year, was completed, and inaugurated on Monday, August 31, 2020, by the Rector and the Regent of Gunungkidul, accompanied by all UNY and Regional leaders.

In its first year, the UNY Gunungkidul Campus opened six Applied Bachelor (D-IV Vocational) study programs, namely Fashion Design, Culinary Arts, Electronics, Office Administration, Public Accounting, and Digital Economy. Laboratories and practical equipment for the six study programs were immediately fulfilled. New student registration was also opened. A total of 1,147 people from 13 provinces applied to the six study programs, but only 375 students could be accepted due to limited space and teaching staff. The first lecture was held on September 1, 2020, which was conducted online due to the Covid-19 pandemic.

To carry out lecture activities, the management organization of the UNY Gunungkidul Campus was formed. Acting as the Head of Management was Dr. Slamet Suyanto, M. Ed., and as the Secretary was Dr. Sutopo, MT, SPd. In addition, there were four educational staff members who helped manage the UNY GK campus. To support lecture activities, a total of 17 Contract Lecturers were assigned to teach at the UNY GK campus under the guidance of senior lecturers from the Faculty of Engineering and the Faculty of Economics. Such is the brief history of the establishment of the UNY vocational campus in Gunungkidul Regency.