Located off old Seven Mile Bridge, at approximately mile marker 45, west of Knight's Key.

Named Cayo Paloma on many Spanish charts. Blunt chart (1846) shows Dove Kay. Gerdes, in his "Reconnaissnce of the Florida Reefs and All the Keys" (1849) states: "The first key in Bahia Honda Bank W. of Key Vacas Harbor is named Pigeon Key."

Said to be named for large flocks of White-crowned pigeons (Columba leucocephala Linnaeus) which once roosted here. During the building of the Florida East Coast Railway Key West Extension, a major construction depot was located here, the jumping off point for construction of the Seven Mile Bridge. A number of buildings from the Flagler era remain on the island.