diff --git a/homeassistant/components/threshold/binary_sensor.py b/homeassistant/components/threshold/binary_sensor.py
index 8cec85bf20d..ce2091fbad5 100644
--- a/homeassistant/components/threshold/binary_sensor.py
+++ b/homeassistant/components/threshold/binary_sensor.py
@@ -212,25 +212,37 @@ class ThresholdSensor(BinarySensorEntity):
 
         if self.sensor_value is None:
             self._state_position = POSITION_UNKNOWN
-            self._state = False
+            self._state = None
+            return
 
-        elif self.threshold_type == TYPE_LOWER:
+        if self.threshold_type == TYPE_LOWER:
+            if self._state is None:
+                self._state = False
+                self._state_position = POSITION_ABOVE
             if below(self._threshold_lower):
                 self._state_position = POSITION_BELOW
                 self._state = True
             elif above(self._threshold_lower):
                 self._state_position = POSITION_ABOVE
                 self._state = False
+            return
 
-        elif self.threshold_type == TYPE_UPPER:
+        if self.threshold_type == TYPE_UPPER:
+            if self._state is None:
+                self._state = False
+                self._state_position = POSITION_BELOW
             if above(self._threshold_upper):
                 self._state_position = POSITION_ABOVE
                 self._state = True
             elif below(self._threshold_upper):
                 self._state_position = POSITION_BELOW
                 self._state = False
+            return
 
-        elif self.threshold_type == TYPE_RANGE:
+        if self.threshold_type == TYPE_RANGE:
+            if self._state is None:
+                self._state = True
+                self._state_position = POSITION_IN_RANGE
             if below(self._threshold_lower):
                 self._state_position = POSITION_BELOW
                 self._state = False
@@ -240,3 +252,4 @@ class ThresholdSensor(BinarySensorEntity):
             elif above(self._threshold_lower) and below(self._threshold_upper):
                 self._state_position = POSITION_IN_RANGE
                 self._state = True
+            return
diff --git a/tests/components/threshold/test_binary_sensor.py b/tests/components/threshold/test_binary_sensor.py
index f009e4c48a2..43a752158bf 100644
--- a/tests/components/threshold/test_binary_sensor.py
+++ b/tests/components/threshold/test_binary_sensor.py
@@ -28,8 +28,8 @@ async def test_sensor_upper(hass: HomeAssistant) -> None:
     hass.states.async_set("sensor.test_monitored", 15)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "below"
+    assert state.state == "off"
 
     hass.states.async_set(
         "sensor.test_monitored",
@@ -62,12 +62,12 @@ async def test_sensor_upper(hass: HomeAssistant) -> None:
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
     assert state.attributes["position"] == "unknown"
-    assert state.state == "off"
+    assert state.state == "unknown"
 
     hass.states.async_set("sensor.test_monitored", 15)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
+    assert state.attributes["position"] == "below"
     assert state.state == "off"
 
 
@@ -88,8 +88,8 @@ async def test_sensor_lower(hass: HomeAssistant) -> None:
     hass.states.async_set("sensor.test_monitored", 15)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "above"
+    assert state.state == "off"
 
     hass.states.async_set("sensor.test_monitored", 16)
     await hass.async_block_till_done()
@@ -116,12 +116,12 @@ async def test_sensor_lower(hass: HomeAssistant) -> None:
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
     assert state.attributes["position"] == "unknown"
-    assert state.state == "off"
+    assert state.state == "unknown"
 
     hass.states.async_set("sensor.test_monitored", 15)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
+    assert state.attributes["position"] == "above"
     assert state.state == "off"
 
 
@@ -143,15 +143,15 @@ async def test_sensor_upper_hysteresis(hass: HomeAssistant) -> None:
     hass.states.async_set("sensor.test_monitored", 17.5)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "below"
+    assert state.state == "off"
 
     # Set the monitored sensor's state to the threshold - hysteresis
     hass.states.async_set("sensor.test_monitored", 12.5)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "below"
+    assert state.state == "off"
 
     hass.states.async_set("sensor.test_monitored", 20)
     await hass.async_block_till_done()
@@ -191,7 +191,7 @@ async def test_sensor_upper_hysteresis(hass: HomeAssistant) -> None:
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
     assert state.attributes["position"] == "unknown"
-    assert state.state == "off"
+    assert state.state == "unknown"
 
     hass.states.async_set("sensor.test_monitored", 18)
     await hass.async_block_till_done()
@@ -218,15 +218,15 @@ async def test_sensor_lower_hysteresis(hass: HomeAssistant) -> None:
     hass.states.async_set("sensor.test_monitored", 17.5)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "above"
+    assert state.state == "off"
 
     # Set the monitored sensor's state to the threshold - hysteresis
     hass.states.async_set("sensor.test_monitored", 12.5)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "above"
+    assert state.state == "off"
 
     hass.states.async_set("sensor.test_monitored", 20)
     await hass.async_block_till_done()
@@ -266,7 +266,7 @@ async def test_sensor_lower_hysteresis(hass: HomeAssistant) -> None:
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
     assert state.attributes["position"] == "unknown"
-    assert state.state == "off"
+    assert state.state == "unknown"
 
     hass.states.async_set("sensor.test_monitored", 18)
     await hass.async_block_till_done()
@@ -293,15 +293,15 @@ async def test_sensor_in_range_no_hysteresis(hass: HomeAssistant) -> None:
     hass.states.async_set("sensor.test_monitored", 10)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "in_range"
+    assert state.state == "on"
 
     # Set the monitored sensor's state to the upper threshold
     hass.states.async_set("sensor.test_monitored", 20)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "in_range"
+    assert state.state == "on"
 
     hass.states.async_set(
         "sensor.test_monitored",
@@ -335,7 +335,7 @@ async def test_sensor_in_range_no_hysteresis(hass: HomeAssistant) -> None:
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
     assert state.attributes["position"] == "unknown"
-    assert state.state == "off"
+    assert state.state == "unknown"
 
     hass.states.async_set("sensor.test_monitored", 21)
     await hass.async_block_till_done()
@@ -363,29 +363,29 @@ async def test_sensor_in_range_with_hysteresis(hass: HomeAssistant) -> None:
     hass.states.async_set("sensor.test_monitored", 8)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "in_range"
+    assert state.state == "on"
 
     # Set the monitored sensor's state to the lower threshold + hysteresis
     hass.states.async_set("sensor.test_monitored", 12)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "in_range"
+    assert state.state == "on"
 
     # Set the monitored sensor's state to the upper threshold + hysteresis
     hass.states.async_set("sensor.test_monitored", 22)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "in_range"
+    assert state.state == "on"
 
     # Set the monitored sensor's state to the upper threshold - hysteresis
     hass.states.async_set("sensor.test_monitored", 18)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
-    assert state.attributes["position"] == "unknown"
-    assert state.state == "unknown"
+    assert state.attributes["position"] == "in_range"
+    assert state.state == "on"
 
     hass.states.async_set(
         "sensor.test_monitored",
@@ -459,7 +459,7 @@ async def test_sensor_in_range_with_hysteresis(hass: HomeAssistant) -> None:
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
     assert state.attributes["position"] == "unknown"
-    assert state.state == "off"
+    assert state.state == "unknown"
 
     hass.states.async_set("sensor.test_monitored", 17)
     await hass.async_block_till_done()
@@ -506,13 +506,13 @@ async def test_sensor_in_range_unknown_state(
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
     assert state.attributes["position"] == "unknown"
-    assert state.state == "off"
+    assert state.state == "unknown"
 
     hass.states.async_set("sensor.test_monitored", STATE_UNAVAILABLE)
     await hass.async_block_till_done()
     state = hass.states.get("binary_sensor.threshold")
     assert state.attributes["position"] == "unknown"
-    assert state.state == "off"
+    assert state.state == "unknown"
 
     assert "State is not numerical" not in caplog.text