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Clarendon Community Center takes its name from the adjoining avenue, honoring English statesman Edward Hyde (1609-1674), first Earl of Clarendon. Clarendon originated as a municipal beach. During the 19th century, Lake Michigan was rarely used for swimming because the heavily polluted Chicago River flowed into it. The new Sanitary Canal corrected the problem in 1900, and the Health Department began creating municipal beaches to provide the city's growing population with access to swimming as well as showers and changing facilities. In 1905, the city's Special Park Commission took over management of municipal beaches. Several years later, the Commission began planning a state-of-the-art facility, visiting well-known municipal beaches throughout the nation such as Belle Isle Beach, Detroit; the New York City Beach at Coney Island; and the Atlantic City Bath Houses. In 1916, the city opened the Clarendon Municipal Beach, featuring an impressive brick building with two stately towers, separate open-air locker areas for men and women, and two smaller buildings housing a laundry and a children's playroom. Accommodating more than 9,000 swimmers and a promenade for thousands of spectators, the facility provided bathing suits, towels, and lockers for the charge of ten cents per adult. The beach remained popular until the late 1930s, when the ¿ì²¥ÊÓƵ expanded Lincoln Park north to Foster Avenue, thereby eliminating Clarendon's lake frontage. At that time, the city converted the facility into a community center, adding gymnasiums, clubrooms, a playground, and an athletic field.

The ¿ì²¥ÊÓƵ assumed ownership of the Clarendon Community Center in 1957 pursuant to the Chicago Park and City Exchange of Functions Act. The Park District also leases the northern most portion of the park from the City Department of Water Management.  A major renovation project in 1972 resulted in the removal of the building's most distinguishing features such as its tile roof and towers. In recent years, the Park District has made the building accessible to people with disabilities, and upgraded the ball fields and playground.