The use of yeast as a food dates all the way back to the Ancient Egyptians. Note that unlike the yeast used to leaven bread, nutritional yeast is inactive. It has been deactivated so that it cannot be used to make bread rise or convert sugar into alcohol. It is also different from brewer’s yeast, though the two are strains of the same fungus.
The main difference is the source. As its name suggests, brewer’s yeast is a product of the brewing industry; it is typically bitter because it is grown on malted barley and other grains. Nutritional yeast is obtained via other media, like molasses. They both contain similar amounts of roughly the same nutrients.
Researchers have traced the ancestry of modern yeast strains to yeasts back to the 16th century, but commercial production of nutritional yeast really began at the start of the 20th century. It was made usable largely as a result of the invention of the microscope and because of Louis Pasteur’s studies. Both of these factors made it possible for scientists to get a better understanding of yeast.