Part of the grassland and the cliffs at the nature reserve were laid down 43 million years ago and are a designated Site of Special Scientific Interest for their geological importance.

The site takes its current name from the steamer boat that was pulled up into a gap in the cliff and wedged between two holly trees in 1830, arranged and paid for by Lord Stuart de Rothesay.

The steamer boat was subsequently used and inhabited as a sea lodge for many years, falling into disrepair around the beginning of the 20th century.

Steamer Point was once part of the grounds of Highcliffe Castle and was originally intended as a formal and functional woodland, with salt-tolerant trees, such as holm oak, planted to help stabilise the cliff.

During the war, Steamer Point was used by the Signals Research and Development Establishment as the site of a military radar research station, helping to develop radar cover for the south coast.

The devices developed at Steamer Point at this time included radar-guided anti-aircraft guns, radar beacons and the Tenset radio telephone used by Lord Montgomery during his European campaign.

The building known as 'Site 16' was used as an anti-aircraft gun emplacement with a Lewis machine gun. The number 16 is still visible today.