Lightest among the major half-track designs used by the German Army, the SdKfz 10 was designed as an artillery tractor for various light and medium-caliber guns including the 2cm FlaK 30, 3.7cm PaK 36, and 7.5cm leIG. Like most of its half-track contemporaries, it could also be used interchangeably as a personnel carrier. The lower weight of the SdKfz 10 allowed it to be designed with its wheels and tracks attached directly on the hull rather than a conventional load-bearing frame. Both tracks and wheels could be used for steeing, and the tracks were overlapped and interleaved as per the popular arrangement on many German tracked and half-tracked vehicles. The troop compartment could carry up to six troops in forward-facing seats, and a convertible canvas top could also be erected when necessary. However, the vehicle was unarmored although some later versions could feature armored driver's cabs. Besides its main role as an artillery tractor, other roles included a decontamination vehicle, posion gas vehicle, and most importantly, as self-propelled anti-aircraft guns with either 2cm FlaK 30 or 38 gun mounts. These featured foldable side and real panels as well as larger hull dimensions. Anti-tank variants were also built in small numbers. The SdKfz 10 served throughout the entire war with construction undertaken by as many as seven different manufacturers, with the design serving as the basis for the armored SdKfz 250. It was also acquired by the Swedish Army.

The prototype of the Leichter Zugkraftwagen 1t (SdKfz 10) appeared in 1934 and was known by its manufacturer designation Demag DII 1, followed by a second prototype DII 2. The first production version of the basic artillery tractor/personnel carrier was the DII 3 and was followed by the definitive D7 which changed through its production run by having a strengthened hull allowing it to carry heavier loads. Numerous chemical vehicles for the Nebeltruppen (chemical troops) were produced including the SdKfz 10/1 chemical detection vehicle, 10/2 chemical decontamination vehicle, and 10/3 posion gas vehicle. Anti-aircraft variants consisted of the SdKfz 10/4 with a 2cm FlaK 30 gun and 10/5 with a FlaK 38 gun. In both cases, the hull was widened and folding side and real panels provided. Some also provided armor protection to the driver's cab and mounted a gun shield. Ad hoc anti-tank variants were also produced, either with a 3.7cm Pak36 or 5cm PaK 38.