Yttrium was discovered by Johan Gadolin, a Finnish chemist, while analyzing the composition of the mineral gadolinite ((Ce, La, Nd, Y)₂FeBe₂Si₂O₁₀) in 1789. Gadolinite, which was named for Johan Gadolin, was discovered several years earlier in a quarry near the town of Ytterby, Sweden. Today, yttrium is primarily obtained through an ion exchange process from monazite sand ((Ce, La, Th, Nd, Y)PO₄), a material rich in rare earth elements.

Although metallic yttrium is not widely used, several of its compounds are. Yttrium oxide (Y₂O₃) and yttrium orthovanadate (YVO₄) are both combined with europium to produce the red phosphor used in color televisions. Garnets made from yttrium and iron (Y₃Fe₅O₁₂) are used as microwave filters in microwave communications equipment. Garnets made from yttrium and aluminum (Y₃Al₅O₁₂) are used in jewelry as simulated diamond.