The Bahraini Dinar was introduced as a currency in 1965, six years before Bahrain gained full independence; it replaced the Gulf Rupee at a rate of 10 rupees = 1 dinar. The Dinar is subdivided into 1,000 Fils (the singular form is also Fils); hence it is usually represented with three decimal places denoting the Fils. The 500 Fils (0.500 Dinar) coin is the largest circulating denomination.
Larger denominations have only been issued as non-circulating legal tender and are struck in precious metals. There have been no coins issued explicitly carrying the denomination of Ten Dinars. However, some gold issues have traditionally been considered (and were initially listed in Remick and Krause catalogues as) such even though the text on them does not call them "ten dinars". Current thinking seems to classify them as medals instead.
This coin was the second in the series. It commemorates the Independence of Bahrain, declared on 14 August 1971.