The blue stripes represent the sky, and the white stripes represent both the peaks of the Rocky Mountains and silver, as well as the resulting mining industry; the blue and white stripes together also represent the colors of the columbine flower. Other symbolism apart from the senate bill has been noted, including the red coloring of the "C" standing for the "ruddy" earth that covers much of the state's terrain.

The flag was designed by Andrew Carlisle Carson and was adopted by the Colorado General Assembly on June 5, 1911. It is one of the most recognizable state flags in the United States.