Blue Ridge was laid out in 1886 when the Marietta and North Georgia Railroad was extended to that point. It was incorporated in 1887. In 1895, the seat of Fannin County was transferred to Blue Ridge from Morganton.
As of the 2010 United States Census, there were 1,290 people residing in the city. The racial makeup of the city was 92.1% White, 1.2% Black, 0.2% Native American, 0.5% Asian, 0.7% from some other race and 0.9% from two or more races. 4.5% were Hispanic or Latino of any race. As of the census of 2000, there were 1,210 people, 553 households, and 319 families residing in the city. The population density was 557.2 people per square mile. There were 631 housing units at an average density of 290.6 per square mile. The racial makeup of the city was 98.26% White, 0.41% African American, 0.41% Asian, 0.17% from other races, and 0.74% from two or more races. Hispanic or Latino of any race were 0.83% of the population. There were 553 households, out of which 25.1% had children under the age of 18 living with them, 38.9% were married couples living together, 15.9% had a female householder with no husband present, and 42.3% were non-families. 38.2% of all households were made up of individuals, and 19.7% had someone living alone who was 65 years of age or older. The average household size was 2.14 and the average family size was 2.81. In the city, the population was spread out, with 22.3% under the age of 18, 9.8% from 18 to 24, 23.9% from 25 to 44, 25.2% from 45 to 64, and 18.8% who were 65 years of age or older. The median age was 39 years. For every 100 females, there were 83.3 males. For every 100 females age 18 and over, there were 80.8 males. The median income for a household in the city was $28,214, and the median income for a family was $35,259. Males had a median income of $25,859 versus $17,941 for females. The per capita income for the city was $16,149. About 13.7% of families and 17.0% of the population were below the poverty line, including 22.9% of those under age 18 and 16.6% of those age 65 or over.
In the late 2000s and continuing through the 2010s, the city has seen a surge in new business, particularly from the LGBT community which constitutes a larger percentage of the population than is typical for a rural community and one of the highest in Georgia. Despite some recent reports of Blue Ridge rivaling Atlanta as the most LGBT-friendly city in Georgia, there are notable facts that challenges this notion. As of 2020, there are over 30 LGBT-centric public gathering spaces in the Atlanta area. There are none in the Blue Ridge area. In 2019, heavy opposition followed students wanting to create a Gay-Straight Alliance club at Fannin County High School. In contrast, hundreds of public high school students in the Atlanta area are active members of Gay-Straight Alliance clubs and this has been commonplace for decades. In 2018, Atlanta's mayor established the city's first LGBT Advisory Board. The Blue Ridge mayoral office never had any type of LGBT advocacy group. In the 2016 U.S. presidential election, 82% of Fannin County voted for Republican Donald J. Trump, the most anti-LGBT candidate according to GLAAD and the Human Rights Campaign. Only 27% of Fulton County voted for him in the 2016 election. In 2016, notable backlash came from the local community over Fannin County High School considering to allow transgender students utilize restrooms that match their gender identity. During a Fannin County Board of Education meeting discussing the matter, a 2012 transgender graduate of the high school stated he was often beaten and harassed by students who were strangely consumed and misinformed about his identity. Throughout the meeting, hundreds cheered on speakers who called LGBT people "perverts" and "pedophiles".
The Fannin County School District holds pre-school to grade twelve, and consists of three elementary schools, a middle school, and a high school. The district has 179 full-time teachers and more than 3,212 students.