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The term "talking book" came into being in the 1930s with government programs designed for blind readers, while the term "audiobook" came into use during the 1970s when audiocassettes began to replace records. In 1994, the Audio Publishers Association established the term "audiobook" as the industry standard.

Spoken word recordings first became possible with the invention of the phonograph by Thomas Edison in 1877. "Phonographic books" were one of the original applications envisioned by Edison which would "speak to blind people without effort on their part." The initial words spoken into the phonograph were Edison's recital of "Mary Had a Little Lamb", the first instance of recorded verse. In 1878, a demonstration at the Royal Institution in Britain included "Hey Diddle Diddle, the Cat and the Fiddle

Producing an audiobook consists of a narrator sitting in a recording booth reading the text, while a studio engineer and a director record and direct the performance. If a mistake is made the recording is stopped and the narrator reads it again. With recent advancements in recording technology, many audiobooks are also now recorded in home studios by narrators working independently. Audiobooks produced by major publishing houses undergo a proofing and editing process after narration is recorded.

Audiobooks are distributed on any audio format available, but primarily these are records, cassette tapes, CDs, MP3 CDs, downloadable digital formats, and solid state preloaded digital devices in which the audio content is preloaded and sold together with a hardware device. In 1955, a German inventor introduced the Sound Book cassette system based on the Tefifon format where instead of a magnetic tape the sound was recorded on a continuous loop of grooved vinylite ribbon similar to the old 8-tra

Audiobooks have been used to teach children to read and to increase reading comprehension. They are also useful for the blind. The National Library of Congress in the U.S. and the CNIB Library in Canada provide free audiobook library services to the visually impaired; requested books are mailed out to clients. Founded in 1996, Assistive Media of Ann Arbor, Michigan was the first organization to produce and deliver spoken-word recordings of written journalistic and literary works via the Internet