In 1393 King Richard II compelled landlords to erect signs outside their premises. The legislation stated "Whosoever shall brew ale in the town with intention of selling it must hang out a sign, otherwise he shall forfeit his ale." This was in order to make them easily visible to passing inspectors who would decide the quality of the ale they provided.

Another important factor was that during the Middle Ages a large percentage of the population would have been illiterate and so pictures were more useful than words as a means of identifying a public house.

The very earliest signs were often not painted but consisted, for example, of paraphernalia connected with the brewing process such as bunches of hops or brewing implements, which were suspended above the door of the public house. In some cases local nicknames, farming terms and puns were also used. Local events were also often commemorated in pub signs.

Simple natural or religious symbols such as the 'The Sun', 'The Star' and 'The Cross' were also incorporated into pub signs. Some pubs also have Latin inscriptions.

Other favorite subjects which lent themselves to visual depiction included the name of great battles, explorers, local notables, discoveries, sporting heroes and members of the royal family. Some pub signs are in the form of a pictorial pun or rebus.

In the modern era most British pubs still have highly decorated signs hanging over their doors, and these retain their original function of enabling the rapid identification of the public house. Today's pub signs almost always bear the name of the pub, both in words and in pictorial representation.