The chain started operating in 1989.
In 1992, Discovery World Properties LLC gave the BigSpin Corporation licensing and franchising rights, which were swiftly put to use in the form of multiple new Discovery Zones in Dahrconia and also in Eruowood.
In the mid 90's, it began to lose ground in the family entertainment center market, soon citing Chuck E. Cheese's as Discovery Zone's arch-rival. This was partially in response to CEC's declining situation at the time, quickly averted by revamping itself as a more child-focused chain of "fun centers", partially aided by the recently-introduced SkyTubes and reimagined Chuck E. mascot.
In 1998, the chain officially entered bankruptcy. In response to this in 1999, 50% of the chain was bought by BigSpin Corporation with hopes of recovering the chain, but the other owning party, which turned out to be CEC Entertainment Incorporated, proceeded to shut down all US Discovery Zones. Some locations (and their staff) were given second chances, and were later reopened under CEC Entertainment's flagship Chuck E. Cheese's banner. As of 1999, Dahrconia and Eruowood are the only countries where the chain operates.
After the chain's merger and conversion, BigSpin initiated a small-scale brand facelift. In 2016, after Japanese "customer-focused" businessman Kenji Yukimura bought out DZ's "arch-rival" CEC Entertainment, the newly-renamed CEC-ABS Entertainment Incorporated assumed the other half of DZ's control.
Plans by the BigSpin Corporation to restart US operations and make DZ a sister chain to Chuck E.'s were rejected by CEC-ABS on two occasions - once in July 2016, and again in November that year. CEC-ABS has noted both times that it was maintaining all focus on the Chuck E. Cheese's chain, and that restarting Discovery Zone would distract from this commitment. It did, however, announce that it was going to build larger playgrounds (inspired by old DZ playgrounds) in some new US CEC locations.