From the 1930's, Balaton became more and more popular which resulted in more accidents during larger storms. This is why, after a proposition by colonel and meteorologist dr. Alfréd Hille, the storm warning and lifeguard services were initiated at the lake.

At first they had 15 stations using sirens and sign baskets which were replaces by hail cannons and flares. If the red bucket was up in the air that was a sign of an upcoming storm, if it was down people anticipate a calm weather. The flare warning method was in use until the 1980's. The yellow flare signified strong winds and the red flare meant stormy winds. After this method became obsolete, the current system using lights was installed in 1988 along with automatic measuring stations.

The idea of a permanent storm warning observatory came up in the 1930-1940's but due to World War II it could only become reality in the 1950's.

The building resembling a UFO was designed by Péter Molnár and built in 1956. The observatory was considered a modern building when it was constructed. The observation tower and the adjacent building is connected with a sail-like wall which also surrounds the garden.

The observatory was renovated in 2008 and the construction was led by Ybl Award winner architect János Ripszám. The statue "Urania" by Miklós Borsos can be seen in the garden of the building.