Since the formation of the terrestrial planets, atmospheric loss has irreversibly altered their atmospheres, leading to remarkably different surface environments - Earth has remained habitable while Venus and Mars are apparently desolate. The concept of habitability centres around the availability of liquid water which depends greatly on the composition of the atmosphere. While the history of molecular oxygen O$_2$ in Earths atmosphere is debated, geological evidence supports at least two major episodes of increasing oxygenation: the Great Oxidation Event and the Neoproterozoic Oxidation Event. Both are thought to have been pivotal for the development and evolution of life. We demonstrate through three-dimensional simulations that atmospheric O$_2$ concentrations on Earth directly control the evolution and distribution of greenhouse gases (such as O$_3$, H$_2$O, CH$_4$ and CO$_2$) and the atmospheric temperature structure. In particular, at $leq 1$% the present atmospheric level (PAL) of O$_2$, the stratosphere collapses. Our simulations show that a biologically ineffective ozone shield, lower than previously thought, existed during the Proterozoic, with a need for a Phanerozoic ozone shield to allow the emergence of surface life. We find that O$_2$ acts as a valve for the loss rate of atmospheric hydrogen through the exosphere. Estimated levels of hydrogen escape for the Proterozoic eon are all lower than present day, enabling us to establish Earths water loss timeline. Furthermore, we demonstrate how O$_2$ on terrestrial exoplanets determines their theoretical transmission spectra, challenging signal-to-nose ratio assumptions contributing to the design of next generation telescopes that will facilitate the characterisation of Earth-like worlds.
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