The town's economy was initially based upon fishing and agriculture as in the case of Brixham across Torbay, but in the early 19th century the town began to develop into a fashionable seaside resort, initially frequented by members of the Royal Navy during the Napoleonic Wars while the Royal Navy anchored in the bay and later by the crème de la crème of Victorian society as the town's fame spread. Renowned for its healthful climate, the town earned the nickname of the English Riviera and favourable comparisons to Montpellier.

Torquay's name originates in it being the quay of the ancient village of Torre. In turn, Torre takes its name from the tor, the extensively quarried remains of which can be seen by the town's Tor Hill Road.

Torquay is also set along a coastline renowned for its beaches, having nine popular beaches. The high standards of water quality and beach facilities mean that many carry coveted awards, including no fewer than three European Blue Flags - more than any other resort in the UK.