Born Peter Schwarze in Leipzig, Germany, he adopted the name Blinky Palermo in 1964 while studying at the Kunstakademie Düsseldorf under Joseph Beuys. His early work was deeply influenced by the geometric abstraction of Kazimir Malevich and the color field painting of Barnett Newman and Ellsworth Kelly.

Palermo is best recognized for his Stoffbilder, which consist of dyed fabric stretched over wooden frames, and his site-specific wall paintings. His practice focused on the relationship between color, light, and the architectural environment, often treating the wall itself as a canvas.

His legacy remains a significant touchstone in European minimalism. His work continues to be studied for its rigorous exploration of spatial perception and the reduction of painting to its essential material components.