The badge, sometimes known as the "Discharge Badge", the "Wound Badge" or "Services Rendered Badge", was first issued in September 1916, along with an official certificate of entitlement. If a person served in an active war zone then a King's Certificate of Discharge stating that they "Served with honour" would accompany the badge.

The large sterling silver lapel badge was intended to be worn on civilian clothes. The decoration was introduced as an award of "King's silver" for having received wounds or injury during loyal war service to the Crown's authority. A secondary causation for its introduction was that a practice had developed in the early years of the war in the United Kingdom where some women publicly embarrassed men of fighting age who were not in military uniform, by ostentatiously presenting them with white feathers, as a suggestion of cowardice. As the war had developed substantial numbers of servicemen who had been discharged from His Majesty's Forces with wounds that rendered them unfit for war service, but which were not obvious from their outward appearance, found themselves being harassed in such a manner and the badge, to be worn on the right breast while in civilian dress, was a means of discouraging such incidents being directed at ex-forces' personnel.

The badge bears the royal cypher "GRI" (for Georgius Rex Imperator; George, King and Emperor) and around the rim "For King and Empire - Services Rendered".

Each badge was uniquely numbered on the reverse. The War Office maintained registers recording the soldier and each badge number issued in the United Kingdom.

Each badge issued by the War Office was accompanied by a form W5149

The accompanying War Badge and Certificate No. _______ are forwarded herewith to _____________________ in respect of ____ service as a soldier of His Majesty's forces.

The Badge will be worn on the right breast or on the right lapel of the jacket, but not in Naval or Military uniform. Duplicates of the Badge and Certificate cannot be issued under any circumstances.

Receipt of the same should be acknowledged hereon.

The War Office made it known that it would not replace Silver War Badges if they were lost, however if one was handed into a police station then it would be returned to the War Office, which would seek to return it using its records to its recipient.

The military authorities of Canada, New Zealand, Australia, South Africa and Rhodesia maintained their own registers of issue (which were copied to the War Office in London to provide it with an Imperial master-record). This Master List was administratively destroyed by the Ministry of Defence later in the 20th Century, only a few pages of it are extant at The National Archives, in Kew, Surrey.

Those personnel of HM Forces discharged after 31 December 1919 were no longer eligible for the badge.