The island has been occupied since the mesolithic period and has a colourful history including a time of Norse rule and a long period of domination by Clan MacLeod and Clan Donald. The events of the 19th century had a devastating impact on the human population, which declined from over 20,000 to around 9,200 in the early 21st century. Nonetheless, in contrast to many other Scottish islands, this represents a 4 per cent increase from the census of 1991. The main industries are tourism, agriculture, fishing and whisky-distilling and the largest settlement is Portree, which is known for its picturesque harbour.

Skye is part of the Highland Council local government area and is now linked to the mainland by a road bridge. The island is renowned for its spectacular scenery, vibrant culture and heritage, and its abundant wildlife including the Golden Eagle, Red Deer and Atlantic Salmon.

Skye's history includes the influence of Gaelic, Norse and English speaking peoples and the relationships between their names for the island are not straightforward. The Gaelic name for the "Isle of Skye" is An t-Eilean Sgitheanach (or Sgiathanach, a more recent and less common spelling). The meaning of this name is not clear. Various etymologies have been proposed, such as the "winged isle" or "the notched isle" but no definitive solution has been found to date and the placename may be from a substratum language and simply opaque.

For example, writing in 1549, Donald Munro, High Dean of the Isles wrote: "This Ile is callit Ellan Skiannach in Irish, that is to say in Inglish the wyngit Ile, be reason it has mony wyngis and pointis lyand furth fra it, throw the dividing of thir foirsaid Lochis".

This was by no means the first written reference. Roman sources refer to the Scitis (see the Ravenna Cosmography) and Scetis can be found on a map by Ptolemy. A possible derivation from *skitis, an early Celtic word for "winged", which may describe the island's peninsulas that radiate out from a mountainous centre, has also been suggested.

In the Norse sagas Skye is called Skíð, for example in the Hákonar saga Hákonarsonar saga and a skaldic poem in the Heimskringla from c. 1230 which contains a line that translates as "the hunger battle-birds were filled in Skye with blood of foemen killed". According to other authors, it was referred to in Norse as skuy (misty isle), *skýey or skuyö (isle of cloud). It is not certain whether the Gaelic poetic name for the island, Eilean a' Cheò "isle of the mist" precedes or postdates the Norse name. Some legends also associate the isle with the mythic figure of Queen Scáthach.

In April 2007 it was reported in the media that the island's official name had been changed by the Highland Council to Eilean a' Cheò. However, the Council clarified that this name referred only to one of its 22 wards in the then impending election, and that there were no plans to change signage or discontinue the English name.

At 1,656 square kilometres (639 sq mi), Skye is the second-largest island in Scotland after Lewis and Harris. The coastline of Skye is a series of peninsulas and bays radiating out from a centre dominated by the Cuillin (Gaelic:An Cuiltheann) hills. The main peninsulas include Trotternish in the north, Waternish, Duirinish, Minginish and Strathaird to the west and Sleat in the south. Surrounding islands include Isay, Longay, Pabay, Raasay, Rona, Scalpay, Soay and Wiay. Malcolm Slesser suggested that its shape "sticks out of the west coast of northern Scotland like a lobster's claw ready to snap at the fish bone of Harris and Lewis" and W. H. Murray that "Skye is sixty miles long, but what might be its breadth is beyond the ingenuity of man to state".

Martin Martin visited the island and reported on it at length in a 1703 publication. His geological observations included a note that:

The Black Cuillin, which are mainly composed of basalt and gabbro, include 12 Munros and provide some of the most dramatic and challenging mountain terrain in Scotland. The ascent of Sgurr a' Ghreadaidh is one of the longest rock climbs in Britain and the Inaccessible Pinnacle is the only peak in Scotland that requires technical climbing skills to reach the summit. A full traverse of the Cuillin ridge may take 15–20 hours to complete. The Red Hills (Gaelic: Am Binnean Dearg) to the south are sometimes also known as the Red Cuillin. They are mainly composed of granite that has weathered into more rounded hills with many long screes slopes on their flanks. The highest point of these hills is Glamaig, one of only two Corbetts on Skye.