Creator Shigeru Miyamoto has stated that her name was inspired by Zelda Fitzgerald, the wife of American novelist F. Scott Fitzgerald. Ben Reeves of GameInformer explains further that the "name Zelda (alternately Selda or Segula) might not be used much any more, but this old Yiddish name means 'blessed, happy, or lucky.'

During the development of The Legend of Zelda: Twilight Princess, illustrator Yusuke Nakano tried to portray Zelda as “as if she’s wondering about something”. He drew the illustrations of Zelda with the feelings of “hopelessness and anxiousness”, and tried to avoid associating her with “gloom and doom”. It is hinted that she is portrayed as Link's main love interest.

For the development of The Legend of Zelda: Spirit Tracks, the development team expressed a desire to have the Phantom character that appeared in The Legend of Zelda: Phantom Hourglass’s Wi-Fi battle mode working cooperatively with Link. However, the team questioned why an enemy character would work together with Link, and thought of an idea where a second character would take control of the phantom. Zelda was ultimately chosen since she was "an interesting and appropriate character". Spirit Tracks director Daiki Iwamoto had also expressed an interest to make Zelda "a more integral part of the game" when the development process began. This goal was influenced by a survey Nintendo had looked over revealing that users preferred female characters that were more independent.

Like Link, Princess Zelda has multiple incarnations in the series, varying in physical age, appearance and assumably disposition. In most of the games, Zelda has blonde hair, dark blue eyes, and a slight frame, and wears a pink and white gown with pink dress shoes, but in Twilight Princess she is a tall and pale girl with auburn hair, blue-gray eyes, and has a more womanly figure, and wears a purple and white gown with brown knee-high boots. She is associated with the goddess Nayru and the Triforce of Wisdom. Most iterations of Zelda also have psychic or magical powers, such as teleportation,also known as farore's wind in Brawl, telepathy and precognition; for example, she can cast spells and create or undo barriers and seals. Her alter egos also have their own abilities. Zelda is usually depicted as a right-handed person, except in the Wii version of Twilight Princess, where the game world is mirrored to the Nintendo GameCube version.[citation needed]

Princess Zelda appears in most of the The Legend of Zelda games, often as a central focus of Link's quests. To date, she has appeared directly in every game except The Legend of Zelda: Link's Awakening.

In her first appearance in The Legend of Zelda, she is kidnapped by Ganon, the series' main antagonist, after she divides the Triforce of Wisdom and hides its pieces across the land (as explained in the game manual). She is eventually rescued by Link, and the two of them reunite their respective pieces of the Triforce.

Another incarnation appears in the sequel, Zelda II: The Adventure of Link. This Zelda has been put into an eternal slumber until Link breaks the curse. According to the in-game legend, the elder Zelda has been under a curse so long that it is in her honour that the Hylian royal family maintains a tradition of naming all its princesses after her.

Princess Zelda of A Link to the Past is one of seven maidens descended from the seven sages during the Imprisoning War. She is kidnapped and about to be sent to the Dark World, as the other maidens have been. On the night of her capture, she appears to Link telepathically, imploring him to help her. Though rescued by Link, she is eventually sent to the Dark World. She and the six other maidens, after being rescued, assist Link in breaking the seal on Ganon's tower so that the hero may confront the villain.

The The Legend of Zelda: Ocarina of Time Zelda first appears as a child. Suspicious of the Gerudo King Ganondorf, she charges Link with the task of collecting the three spiritual stones in order to break the seal on the door to the Sacred Realm, so as to obtain the Master Sword and use it against Ganondorf. Just before Link pulls the Master Sword from its pedestal, Ganondorf reveals his wicked intentions and Zelda must flee Hyrule Castle with her guardian Impa before he can capture either of them. Still in hiding seven years later, she poses as a young Sheikah named Sheik. In this disguise she offers Link advice and assistance throughout the remainder of his quest, until she finally reveals her true identity as Princess Zelda. Thus exposed, she is finally captured by Ganondorf. After Link rescues her Zelda works with him to escape the collapsing Castle, guiding him and using her powers to open sealed gates. When Link defeats the resurrected Ganon, she and the other six sages are able to seal Ganon away in the Sacred Realm. After this she sends Link back to his own time, seven years earlier. After the credits, we see young Link again approaching the princess in the Hyrule Castle courtyard. This child version of this incarnation appears briefly in The Legend of Zelda: Majora's Mask, albeit this is only a cameo appearance in a flashback as Link is remembering an earlier meeting between the two of them.

In The Legend of Zelda: Oracle of Seasons and Oracle of Ages the Princess, sensing danger in the lands of Holodrum and Labrynna, sends her handmaiden Impa to protect Din, the Oracle of Seasons, and Nayru, the Oracle of Ages. In the full linked game, Zelda eventually comes to personally encourage the people of Holodrum or Labrynna (depending on what order the games are played) and to help defend against her growing sense of foreboding. She is quickly captured, and Link must rescue her. She thereafter spends time in and around Horon Village (Holodrum) or Lynna City (Labrynna) with Impa, until she is again captured, this time by Twinrova. They take the princess to a hidden realm, and it is revealed that they plan to sacrifice her in order to ignite the Flame of Despair and resurrect Ganon once again. Though they are partially successful, Link interrupts them before they can drain all of Zelda's life force, and so she lives. Link defeats both Twinrova and the incompletely resurrected Ganon, and peace is restored to the land. During the ending credits, Zelda is shown stargazing from a castle balcony, indicating that she returns to Hyrule after the events of the two games.