The history of the park goes back to the 18th century. In the center of Kazan a major-general A. P. Letskoy (1725-1800) owned a one-story manor, where Emperor Pavel I stopped in 1798. In gratitude for the display of hospitality, Pavel I ordered to name a nearby street in honor of the general (now Gorky street). General Letskoy built a garden next to his manor. In the garden they planted trees, installed three powerful 600-candle lanterns for night-time illumination and a small fountain featuring a bronze sculpture of a girl holding a jug in her hands. The fountain was set to commemorate the opening of the first water supply duct in Kazan. The garden was named after Letskoy and became the venue for the Kazan upper class to meet and walk, to hold high society events. However, the people of Kazan changed the name of the Letskoy garden to Lyadskoy and the name gradually stuck.
Much has changed in the park since then. In 1999, the Letskoy estate was replaced with a monument dedicated to Gorky which, in it's turn, was replaced by monument dedicated to Derzhavin in 2003. The girl-fountain sculpture was replaced by a ball-shaped fountain in the 1970s, then reduced to a flowerbed in 2003 and rebuilt in 2015. The same year, the park was completely renovated and landscaped. Two squirrels found new homes in the trees on the square. Near the playground, a sculpture of kind granny Anyanya was created by Vinera Abdullina.