As digital transformation progresses, schools are increasingly confronted with psychosocial challenges such as technostress, digital overload, and unequal participation in digital (learning) environments. This article investigates the conceptual relevance of digital wellbeing for school development, particularly in relation to social inequality. Despite growing attention, the term remains theoretically underdefined in educational research—a gap addressed through a theory-driven review. Drawing on a systematic search, 25 key studies were analyzed for their conceptual understanding and refinement of digital well-being, with a focus on educational relevance. Findings suggest that digital well-being constitutes a multidimensional state shaped by individual, media-related, and socio-structural factors. It emerges when individuals are able to successfully manage the demands of digital environments and is closely linked to digital inequality—particularly in terms of access, usage practices, and the resulting opportunities for participation and health promotion. Since the institutional role of schools has thus far received limited attention, this article shifts the focus toward schools as key arenas for negotiating digital norms and practices and calls for an equity-sensitive and health-conscious perspective on school development in the context of digitalization. In doing so, digital well-being is repositioned as a pedagogical cross-cutting issue that requires coordinated efforts across all levels of the education system, highlighting that equitable digital transformation in schools depends on a critical reflection of power asymmetries within society and educational institutions. The article concludes by advocating for the systematic integration of digital well-being into school development processes as a way to support inclusive digital participation and to foster a health-oriented digital school culture.