Last year, Rae revealed that she had been diagnosed with bone cancer.
Charlotte got her start in show biz through radio and theater, and broke into television acting on auto 53, Where Are You?
Rae starred in the series for seven seasons as a kooky mentor to the students at a fictional all-girls boarding school.
Rae played the beloved TV character until 1986, when health reasons forced her to step down.
The actress played Mrs. Garrett on the beloved 1980s series, a spin-off of Diff'rent Strokes. Now I have to figure out whether I want to go have treatment again or opt for life, ' she continued.
The actress started her career on the radio and in theater as a teenager. She was a two-time nominee for both the Tony and Emmy Awards.
Charlotte Rae has passed away at the age of 92. "I'm grateful for the life I've already had".
Rae also appeared on ER, Pretty Little Liars, and The King of Queens, as well as in films like Don't Mess with the Zohan.
Charlotte also released a tell-all memoir in 2015 where she detailed her Hollywood experiences including her late husband John Strauss' bi-sexuality.
"You all already know my heart is heavy yet", tweeted actress Kim Fields, who played Dorothy "Tootie" Ramsey on Facts of Life.
She previously battled pancreatic cancer in private, telling the outlet that the public was unaware she was undergoing chemotherapy until she announced her recovery.
She is survived by a sister, her son Larry, three grandchildren and a great-grandchild.
Born Charlotte Rae Lubotsky in Milwaukee, on April 22, 1926, she had studied drama at Northwestern University, then moved to NY where, despite early plans to be a "serious" actress, she quickly found work doing satirical sketches in Greenwich Village clubs.