Built around 1530 by Lorenzo Lotti, known to Cardinal Della Valle as the "Lorenzetto", has undergone various transformations and extensions over the centuries. The interventions of the 18th century by Camillo Capranica were entrusted to the architect Tommaso Morelli who built the first wooden structure of the theatre, inaugurated in 1727.

In 1818, as part of an investigation into safety and decoration, the theatre was rebuilt in masonry by Giuseppe Valadier, who was replaced by the architect Gaspare Salvi after the collapse of the upper floor of the building.

Subsequently, the theatre underwent further renovations: in 1888 Francesco Podesti decorated the room with floral motifs, in 1900 the painter Ridolfi redecorated the velarium and, in the 1930s, Silvio Galimberti repainted the ceiling.

In 1969, the theatre was sold by the Capranica family to the Italian Theatre Authority, which was suppressed in 2011, thus ceasing the theatre's activity. To ensure the continuation of its activities, the Ministry for Cultural Heritage and Activities and Tourism (MIBACT) entrusted it to Roma Capitale, asking for an enhancement project.

As of June 2015, a memorandum of understanding between the Ministry of Cultural Heritage and Activities and Tourism and Roma Capitale was signed to start the works on the recovery, enhancement and adaptation to the safety regulations of Teatro Valle.

The works were started in March 2023 with an expected duration of 18 months. 

The planned works include:

• the conservative restoration of the hall, the public areas, the staircases and the façade designed by Giuseppe Valadier;
• the rearrangement of the hall support spaces, with the elimination of all architectural barriers;
• the refunctionalisation of the stage and of the equipment and services;
• the renewal and adaptation of the technological and fire safety systems.