##Tecmo Koei## previously developed multiple games in which they incorporate other IPs into the realm of Dynasty Warriors, such as One Piece: Pirate Warriors. Coincidentally, Tecmo Koei approached ##Nintendo## about creating a Zelda version of Dynasty Warriors just as Zelda series producer Eiji Aonuma was playing one of the previous Dynasty Warriors IP crossover titles. Aonuma was himself considering the potential of a Zelda game with Dynasty Warriors style gameplay at this time.

The game does not take place within the traditional Zelda timeline. Rather, it exists in a separate dimension with a link to the known Zelda timeline. Characters are pulled from the standard timeline into this new dimension as a part of the story. Zelda series producer Eiji Aonuma likened it to how characters in The Avengers all have their own stories, but are pulled together to form a new story.

Concept art of a female version of Link appears in the Hyrule Warriors artbook. Named as "Linkle", or "Rinkuru" in Japanese, she is described as being "little sister-like". Her design includes a crossbow (also demonstrating that she would have been right handed, whereas Link is normally left handed), and a coat in place of Link's signature tunic. Linkle was later announced as a character for Hyrule Warriors Legends.

There were originally plans for a stage in which the player simply chops grass. However, the stage never made the final cut.