The company was founded by Non-Linear Systems (NLS) to compete with the popular Osborne 1 portable microcomputer. Kaypro produced a line of rugged, "luggable" CP/M-based computers sold with an extensive software bundle which supplanted its competitors and quickly became one of the top-selling personal computer lines of the early 1980s.

Kaypro was exceptionally loyal to its original customer base but slow to adapt to the changing computer market and the advent of IBM PC compatible technology. It faded from the mainstream before the end of the decade and was eventually forced into bankruptcy in 1992.

The Kaypro IV and later the Kaypro 4 have two double-sided disks. The Kaypro 4 was released in 1984, and was usually referred to as Kaypro 4 '84, as opposed to the Kaypro IV, released one year earlier and referred to as Kaypro IV '83. The Kaypro IV uses different screen addresses than the Kaypro II, meaning software has to be specific to the model.