The first requests for a light came in 1848, with initial appropriations in 1851. Delays in planning and bidding pushed the start of construction to 1854. Total construction costs came to $43,000 by its completion the following year. Most parts were prefabricated in Baltimore at the Murray and Hazelhurst iron foundry. The parts were then shipped to Seven Foot Knoll by boat where they were assembled atop of the screw piles. In 1875 the original house was replaced with the current cylindrical structure made of wrought iron plates. Ice, the perennial threat to screw-pile structures, caused damage in 1884 and 1894, leading to the the piling of 790 cubic yards of riprap around the piles.

A light-keeper and his family would have stayed on the lighthouse year-round with 8 days off per month. Probably the most famous of the lighthouse keepers was also the last one, Thomas Jefferson Steinhice (also spelled Steinhise and Steinheiss on various family documents). Steinhice, who was tending the lighthouse with his son Earl, rescued 5 men from their tugboat which had broken down on August 21, 1933. The 90 mph (145 km/h) winds and 15-foot (5 m) seas had rendered the tug inoperable. Steinhice took the lighthouse's small motorboat and made his way out in the direction of the tug's distress whistle. He was awarded the Silver Lifesaving Medal for his actions in saving the lives of the stranded crew.