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The bedrock of the island is a diabase sill formed during the volcanic eruptions that created much of the bedrock of northern New Jersey, including the Palisades, approximately 200 million years ago. As an island, Staten Island was formed in the wake of the last ice age. In the late Pleistocene between 20,000 and 14,000 years ago, the ice sheet that covered northeastern North America reached to as far south as present day New York City, to a depth of approximately the same height as the Empire State Building. At one point, during its maximum reach, the ice sheet precisely ended at the center of present day Staten Island, forming a terminal moraine on the existing diabase sill. The central moraine of the island is sometimes called the Serpentine ridge because it contains large amounts of that particular mineral.

In 1857 Dr. Elizabeth Blackwell, the first woman physician, founded the New York Infirmary for Indigent Women and Children.

At the retreat of the ice sheet, Staten Island and Long Island were not yet separated by the Narrows, which had not yet formed. Geologists reckoning of the course of the Hudson River have placed it alternatively through the present course of the Raritan River, south of the island, as well through present-day Flushing Bay and Jamaica Bay.

The Hudson and its tributaries—notably the Mohawk River—drain a large area, and the river is navigable for a great distance. The Erie Canal, opened December 26, 1825, connected the Hudson River to Lake Erie, enabling shipping between cities on the Great Lakes and Europe via the Atlantic Ocean.

The human interaction and expert judgement as to order execution differentiates the NYSE from fully electronic markets. The hybrid market structure is constantly in need of improvement and has trouble keeping up with new innovations in trading technology with too many humans on the floor. The frenzied commotion of men in colored smoks has been captured in several movies, including Wall Street.

New York was cosmopolitan from the first, established and governed largely as a strategic trading post. Jews expelled from Brazil were welcome in New York. St. Patrick's Day was celebrated in New York City for the first time at the Crown and Thistle Tavern on March 17, 1756. This holiday has since become a yearly city-wide celebration that is famous around the world as the St. Patrick's Day Parade.

Land patents in rectangular blocks of eighty acres (320,000 m²) were granted, with the most desirable lands being along the coastline and inland waterways. By 1708, the entire island had been divided up through this fashion into 166 small farms and two large manorial estates, the Dongan estate as well as a 1600 acre (6.5 km²) parcel on the southwestern tip of the island belonging to Christopher Billop (Jackson, 1995).

At the time of the arrival of the first Europeans, the area around what would later be called New York Bay was populated primarily by the Munsee branch of the Lenape, a people in the ethnic and linguistic Algonquian family, loosely connected by a common language.

The Dutch were the first European settlers in the colony known as New Netherland (Nova Belgica in Latin). Fort Nassau was founded near Albany, New York in 1614 and abandoned in 1618.