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The Florence area was originally known as Crossroads, because of the convergence of several roads from Burlington and Union at Ridge Road (now U.S. 25). By 1821, the area was known as Maddentown for Thomas Madden, a Covington attorney who owned a farm on the Burlington Pike. When Madden moved away, the area became known as Connersville in 1828 for Jacob Conner, a settler who assumed responsibility for the growing town. The town was finally renamed Florence because there was another Connersville in Harrison County. The name presumably is for Florence, Italy, but the specific etymology is unclear. It was incorporated on January 27, 1830, and grew quickly after the completion of the Covington-Lexington Turnpike in 1836.

As of the census of 2000, there were 23,551 people, 9,640 households, and 6,073 families residing in the city. The population density was 2,385.6 per square mile (921.1/km2). There were 10,322 housing units at an average density of 1,045.6 per square mile (403.7/km2). Today the racial makeup of the city is 80% White, 10% African American, 0.14% Native American, 4% Asian, 0.06% Pacific Islander, 1% from other races, and 3% from two or more races. Hispanic or Latino of any race were 8% of the population.

There were 9,640 households, of which 32.1% had children under the age of 18 living with them, 46.2% were married couples living together, 12.8% had a female householder with no husband present, and 37.0% were non-families. 30.2% of all households were made up of individuals, and 11.1% had someone living alone who was 65 years of age or older. The average household size was 2.41 and the average family size was 3.03.

24.9% of the population was under the age of 18, 10.7% from 18 to 24, 33.0% from 25 to 44, 19.6% from 45 to 64, and 11.8% who were 65 years of age or older. The median age was 33 years. For every 100 females, there were 90.4 males. For every 100 females age 18 and over, there were 86.7 males.

The median income for a household in the city was $42,567, and the median income for a family was $52,160. Males had a median income of $36,677 versus $26,323 for females. The per capita income for the city was $20,451. About 8.1% of families and 9.5% of the population were below the poverty line, including 11.5% of those under age 18 and 14.0% of those age 65 or over.

In terms of population, Florence gained 2.2% over one year and gained 14.2% over the course of the decade. As of June 2008, the city's population was 27,745 citizens. It is the sixth largest city in the Cincinnati/Northern Kentucky metropolitan area.