Before 1885, the US Navy's senior enlisted men had an assortment of rates with differing pay and satus, grouped together under the title "petty officer." A change to US Navy regulations of 8 January 1885 reclassified the enlisted ratings in relation to each other, and set up three classes of petty officer.

In the Uniform Regulaions of 1886, a new system of insignia was introduced for the new ratings. The eagle that had been used in rating badges since the 1840s was retained, but was combined with chevrons to indicate grade and a mark to indicate specialty. The chevrons were inspired by those of the US Army. First class petty officers wore three chevrons with a lozenge above, like an army first sergeant, second class petty officers three chevrons like a sergeant, and third class petty officers two, like a corporal. There was no one-chevron rank in the army at that time. One petty officer, the master-at-arms, wore an arch of three stripes above the chevrons, similar to an army sergeant major. The rating badges were redesigned in 1894, but an eagle, specialty mark and chevrons still make up the navy's rating insignia today.

It will be noted that the different classes of petty officer were more like the pay grades of today, and each rate had a unique title. Although seaman branch first class petty officers had the word "chief" in their titles, as did the chief musician (second class grade), these were not chief petty officers in the present day sense. When chief petty officers were authorized in 1893, they adopted the chevrons with three "rockers" of the master-at-arms. In addition, master-at-arms was moved from the special to the seaman branch in 1893.

First class petty officers wore double-breasted blue or white coats and visored caps, while lower rates wore standard seaman's jumpers and hats. The chevrons were red on all clothing, with white eagle and specialty marks on blue and vice versa. Gold chevrons were authorized for petty officers with three consecutive Good Conduct Medals. Although the regulations don't specify, it is likely that the gold stripes were worn only on the blue coat or jumper, rather than the frequently laundered whites. There are also examples of rating badges on blue cloth with the eagle and specialty mark embroidered in silver, though this was not authorized in the regulations.

Petty officers who had qualified as seaman gunners wore a flaming shell mark superimposed on the chevrons.