246 Gurkha Signal Squadron in its present guise was formed on 4 May 2002. Having drawn down from Hong Kong in 1997, Queen's Gurkha Signals only had one Squadron (250) but Regiment has been fortunate to reform 246 Gurkha Signal Squadron again as part of 2 Signal Regiment in York.

246 Gurkha Signal Squadron's first establishment goes back to 1952 with I Tp of 3 Squadron 17 Gurkha Divisional Signal Regiment in Malaya. This Troop supported 63 Gurkha Infantry Brigade. It went through a number of name changes in the 1950s and early 1960s as it supported other Brigades and moved to Hong Kong. Further structural re-organisations took place in the late 1970s with the creation of Queen's Gurkha Signals. In 1983 it was formally re-named 246 (Gurkha Field Force) Signal Squadron. With its long association with Field Deployments rather than the somewhat more comfortable static establishment or rear link communications, it became more commonly known within the Regiment as 'Iron Squadron'. Further changes took place later in the 1980s but during 1994, 246 Gurkha Signal Squadron was disbanded with the other Hong Kong Field Squadrons to form the single Hong Kong Gurkha Signal Squadron on 28 June 1984. This too was eventually disbanded in June 1997.

246 Gurkha Signal Squadron has, since its reformation, deployed in support of most operations undertaken by the British Army. As well as countless small detachments and individual augmentees, it has deployed on Operation TELIC in Iraq and various operations in Afghanistan and in support of other operations including deployments to Kosovo.

The Squadron is operationally commanded by Commanding Officer 2 Signal Regiment but administratively, Commander QG Signals still commands the Squadron.