In 7 Apr 1971, the No 1 Squadron was established, as the first founding squadron of the corps. During the Late 70s, the squadron moved its base from the Ngong Shuen Chau Naval Base to CCC Kwei Wah Shan College 

Due to organisation change, No 1 Squadron was reformed as No 101 Squadron in 5 Jan 1995. The squadron belongs to No 1 (Hong Kong Island) Wing, Operations Group. Meanwhile, the squadron shared the meeting base with No 102 Squadron, in Causeway Bay Community Centre  

Within the noughties, Flying Officer William Y L HA and Flight Lieutenant Salina C LUI were commanding the squadron accordingly, with the support of Squadron Warrant Officer MAN K H. The squadron base was also moved to Hong Kong Tang King Po College and become a school-based squadron since then.

During this decade, the squadron moved its base to HKUGA College (2013). Flight Lieutenant Serene T Y CHOW takeover the post of Officer Commanding Squadron in October 2013, when Flight Lieutenant Salina C LUI was transferred to Wing Headquarters, No 1 (Hong Kong Island) Wing as Operations and Training Officer. After a few years of being unfilled, Warrant Officer HO H Y Terrance was appointed as the Squadron Warrant Officer in 2018. The squadron was the first runner up in the "Commandant's Award" English presentation competition with aviation topic during 2018 and 2019.

Facing challenges during a pandemic, the squadron conducted hybrid meeting modes between 2020 and 2022 and cooperated with No 106 Squadron. In the second quarter of 2022, the Squadron conducted joint squadron meetings in No 1 (Hong Kong Island) Wing Headquarters with No 103, 105, 106, and 107 Squadron. After changing of the Chinese footdrill style, Flying Officer Conway K W HUI became the new Officer Commanding Squadron in 2023, and was promoted to Flight Lieutenant 1 year later. The squadron now has regular joint squadron meetings with No 107 Squadron in the Southern district.