It was created by Aaron Cosby, the creator of The Lenny Leggo Show.
ClearSky Productions was founded in April 2012, just prior to the production of "The Lenny Lego Movie", the first of five films based off of The Lenny Lego Show. The name was credited as distributor of the films, while they were produced under a separate name "CTC Pictures" or "CTC Productions" for the films and episodes respectively. ClearSky Productions was only used for the films: it was not used for the show itself.
The channel now known today as "ClearSky Productions" was originally titled "Cosbythecaterpillar", which CTC was an acronym for. However, in 2016, just prior to the debut of The Lenny Leggo Show, it was announced that further media would be released under a single name, ClearSky Productions, as both producer and distributor. This would essentially cause CTC Productions to "merge" with ClearSky Productions. This action took place on June 2nd 2016, when the "Cosbythecaterpillar" channel was renamed to "ClearSky Productions", the name it is still known by to this day, which virtually terminated all operations under the "CTC" name as well as any of it's derivatives.
The logo has changed twice since its creation. The first logo featured a blue sky, the second featured a starry sky, and the third also featured a starry sky but featured a different font and color for the words. In 2016, the original logo was resurrected and is still used today.
Although the letter "S" is not capitalized in the current logo, it is capitalized when referred to elsewhere.