Caucasian Albania is a modern exonym for a former state located in ancient times in the Caucasus, mostly in what is now Azerbaijan (where both of its capitals were located). The modern endonyms for the area are Aghwank and Aluank, among the Udi people, who regard themselves as descended from the inhabitants of Caucasian Albania. However, its original endonym is unknown.

The name Albania is derived from the Ancient Greek name Ἀλβανία and Latin Albanía, created from Greek sources that incorrectly translated the Armenian language. The prefix "Caucasian" is used to avoid confusion with Albania in the Balkans, which has no geographical or historical connections to Caucasian Albania.

Little is known of the region's prehistory, including the origins of Caucasian Albania as a geographical and/or ethnolinguistic concept. In the 1st century BC and the 1st century AD, the area south of the Greater Caucasus and north of the Lesser Caucasus was divided between Caucasian Albania in the east, Caucasian Iberia in the center, Kolchis in the west, Armenia in the southwest and Atropatene to the southeast.

In 252, Caucasian Albania acknowledged the suzerainty of the Sasanian Empire, appearing among its provinces in Shapur I's inscription at the Ka'ba-ye Zartosht. The kingdom would remain an integral part of the empire until its fall. By the end of the 3rd century, the kings of Caucasian Albania were replaced with an Arsacid family, and would later be succeeded by another Iranian royal family in the 5th century AD, the Mihranids.

Aghuank (Old Armenian: Աղուանք Ałuankʿ, Modern Armenian: Աղվանք Aġvank’) is the Armenian name for Caucasian Albania. Armenian authors mention that the name derived from the word "ału" («աղու») meaning amiable in Armenian. The term Aghuank is polysemous and is also used in Armenian sources to denote the region between the Kur and Araxes rivers as part of Armenia.^{[better source needed]} In the latter case it is sometimes used in the form "Armenian Aghuank" or "Hay-Aghuank".

The Armenian historian of the region, Movses Kaghankatvatsi, who left the only more or less complete historical account about the region, explains the name Aghvank as a derivation from the word ału (Armenian for sweet, soft, tender), which, he said, was the nickname of Caucasian Albania's first governor Arran and referred to his lenient personality. Movses Kaghankatvatsi and other ancient sources explain Arran or Arhan as the name of the legendary founder of Caucasian Albania (Aghvan) or even of the Iranian tribe known as Alans (Alani), who in some versions was a son of Noah's son Yafet. James Darmesteter, translator of the Avesta, compared Arran with Airyana Vaego which he also considered to have been in the Araxes-Ararat region, although modern theories tend to place this in the east of Iran.

The Parthian name for the region was Ardhan (Middle Persian: Arran). The Arabic was ar-Rān. In Georgian, it was known as რანი (Rani). In Ancient Greek, it was called Ἀλβανία Albanía. What its inhabitants were called is unknown.

In pre-Islamic times, Caucasian Albania/Arran was a wider concept than that of post-Islamic Arran. Ancient Arran covered all of eastern Transcaucasia, which included most of the territory of the modern-day Azerbaijan Republic and part of the territory of Dagestan. However, in post-Islamic times the geographic notion of Arran reduced to the territory between the Kura and Aras rivers.