Initially launched as a subsidiary of United States Record Corporation in 1939 by Eli Oberstein, Royale began primarily as a reissue vehicle. Most of the early issues used material that was licensed from Berlin-based Ultraphon. Most of these were orchestral recordings by the Berliner Philharmoniker or Orchester Der Deutschen Oper Berlin, but were issued under pseudonyms due to growing anti-German sentiment in the U.S. in the early 1940s. Royale also reissued material from other European sources, including Filmophone (2) and Edison Bell Works London. Oberstein launched his own domestic recording operation in late 1939, when supplies of foreign masters was severed due to escalating conflict in Europe. Although Oberstein assembled a good artist roster and discs were priced to compete with Victor, this was not enough to offset the poor sales and management of the sister label, Varsity. The final Royale recordings were made in August, 1940 and the company went bankrupt later that year. Royale masters were parceled out to several labels over the course of the 1940s, including Majestic, Asch Recordings, Commodore, Continental (6), Regent, Savoy Records and Signature (4).

Oberstein revived both Royale and Varsity in 1948 after he purchased the inactive Sonora (6) pressing plant. New records were credited to Wright Record Corporation, which had recently acquired a group of masters at auction, including many from the Majestic label. This consisted of many of the United States Record Corporation masters that Oberstein had been forced to sell years earlier. In 1950, Wright Record Corporation was succeeded by the Record Corporation Of America.