diff --git a/.flaskenv b/.flaskenv
index 49bf390fb3db..5ed928d76a51 100644
--- a/.flaskenv
+++ b/.flaskenv
@@ -15,4 +15,4 @@
 # limitations under the License.
 #
 FLASK_APP="superset.app:create_app()"
-FLASK_ENV="development"
+FLASK_DEBUG=true
diff --git a/.github/workflows/superset-applitool-cypress.yml b/.github/workflows/superset-applitool-cypress.yml
index 7222ed17d41c..6707fb05b7fe 100644
--- a/.github/workflows/superset-applitool-cypress.yml
+++ b/.github/workflows/superset-applitool-cypress.yml
@@ -28,7 +28,7 @@ jobs:
         browser: ["chrome"]
         node: [16]
     env:
-      FLASK_ENV: development
+      SUPERSET_ENV: development
       SUPERSET_CONFIG: tests.integration_tests.superset_test_config
       SUPERSET__SQLALCHEMY_DATABASE_URI: postgresql+psycopg2://superset:superset@127.0.0.1:15432/superset
       PYTHONPATH: ${{ github.workspace }}
diff --git a/.github/workflows/superset-e2e.yml b/.github/workflows/superset-e2e.yml
index e1b090a5f399..e9ef9a495346 100644
--- a/.github/workflows/superset-e2e.yml
+++ b/.github/workflows/superset-e2e.yml
@@ -26,7 +26,7 @@ jobs:
         containers: [1, 2, 3]
         browser: ["chrome"]
     env:
-      FLASK_ENV: development
+      SUPERSET_ENV: development
       SUPERSET_CONFIG: tests.integration_tests.superset_test_config
       SUPERSET__SQLALCHEMY_DATABASE_URI: postgresql+psycopg2://superset:superset@127.0.0.1:15432/superset
       PYTHONPATH: ${{ github.workspace }}
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index e36363a7a548..8c5d60f23682 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -453,7 +453,7 @@ superset load-examples
 # Start the Flask dev web server from inside your virtualenv.
 # Note that your page may not have CSS at this point.
 # See instructions below how to build the front-end assets.
-FLASK_ENV=development superset run -p 8088 --with-threads --reload --debugger
+superset run -p 8088 --with-threads --reload --debugger --debug
 ```
 
 Or you can install via our Makefile
@@ -477,7 +477,7 @@ $ make pre-commit
 via `.flaskenv`, however if needed, it should be set to `superset.app:create_app()`**
 
 If you have made changes to the FAB-managed templates, which are not built the same way as the newer, React-powered front-end assets, you need to start the app without the `--with-threads` argument like so:
-`FLASK_ENV=development superset run -p 8088 --reload --debugger`
+`superset run -p 8088 --reload --debugger --debug`
 
 #### Dependencies
 
@@ -518,7 +518,7 @@ def FLASK_APP_MUTATOR(app):
 Then make sure you run your WSGI server using the right worker type:
 
 ```bash
-FLASK_ENV=development gunicorn "superset.app:create_app()" -k "geventwebsocket.gunicorn.workers.GeventWebSocketWorker" -b 127.0.0.1:8088 --reload
+gunicorn "superset.app:create_app()" -k "geventwebsocket.gunicorn.workers.GeventWebSocketWorker" -b 127.0.0.1:8088 --reload
 ```
 
 You can log anything to the browser console, including objects:
@@ -603,7 +603,7 @@ So a typical development workflow is the following:
 1. [run Superset locally](#flask-server) using Flask, on port `8088` — but don't access it directly,<br/>
    ```bash
    # Install Superset and dependencies, plus load your virtual environment first, as detailed above.
-   FLASK_ENV=development superset run -p 8088 --with-threads --reload --debugger
+   superset run -p 8088 --with-threads --reload --debugger --debug
    ```
 2. in parallel, run the Webpack dev server locally on port `9000`,<br/>
    ```bash
@@ -922,7 +922,7 @@ For debugging locally using VSCode, you can configure a launch configuration fil
             "module": "flask",
             "env": {
                 "FLASK_APP": "superset",
-                "FLASK_ENV": "development"
+                "SUPERSET_ENV": "development"
             },
             "args": [
                 "run",
diff --git a/Dockerfile b/Dockerfile
index 0745294b4537..7ae77790a4e3 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -51,7 +51,7 @@ FROM python:${PY_VER} AS lean
 
 ENV LANG=C.UTF-8 \
     LC_ALL=C.UTF-8 \
-    FLASK_ENV=production \
+    SUPERSET_ENV=production \
     FLASK_APP="superset.app:create_app()" \
     PYTHONPATH="/app/pythonpath" \
     SUPERSET_HOME="/app/superset_home" \
diff --git a/RELEASING/from_tarball_entrypoint.sh b/RELEASING/from_tarball_entrypoint.sh
index 27b247eb72fe..fa01592b2100 100755
--- a/RELEASING/from_tarball_entrypoint.sh
+++ b/RELEASING/from_tarball_entrypoint.sh
@@ -38,5 +38,5 @@ superset init
 # Loading examples
 superset load-examples --force
 
-FLASK_ENV=development FLASK_APP="superset.app:create_app()" \
+SUPERSET_ENV=development FLASK_APP="superset.app:create_app()" \
 flask run -p 8088 --with-threads --reload --debugger --host=0.0.0.0
diff --git a/UPDATING.md b/UPDATING.md
index d6c6f71668fe..984e20e27c2f 100644
--- a/UPDATING.md
+++ b/UPDATING.md
@@ -31,6 +31,12 @@ assists people when migrating to a new version.
 - [23652](https://github.com/apache/superset/pull/23652): Enables GENERIC_CHART_AXES feature flag by default.
 - [23226](https://github.com/apache/superset/pull/23226): Migrated endpoint `/estimate_query_cost/<int:database_id>` to `/api/v1/sqllab/estimate/`. Corresponding permissions are can estimate query cost on SQLLab. Make sure you add/replace the necessary permissions on any custom roles you may have.
 - [23890](https://github.com/apache/superset/pull/23890): Removes Python 3.8 support.
+- [24404](https://github.com/apache/superset/pull/24404): FLASK_ENV is getting
+  deprecated, we recommend using SUPERSET_ENV and reviewing your
+  config for ENVIRONMENT_TAG_CONFIG, which enables adding a tag in the navbar to
+  make it more clear which envrionment your are in.
+  `SUPERSET_ENV=production` and `SUPERSET_ENV=development` are the two
+  supported switches based on the default config.
 
 ### Breaking Changes
 
diff --git a/docker/.env b/docker/.env
index 5cb16d611a14..619c7d876031 100644
--- a/docker/.env
+++ b/docker/.env
@@ -39,7 +39,7 @@ PYTHONPATH=/app/pythonpath:/app/docker/pythonpath_dev
 REDIS_HOST=redis
 REDIS_PORT=6379
 
-FLASK_ENV=development
+SUPERSET_ENV=development
 SUPERSET_ENV=development
 SUPERSET_LOAD_EXAMPLES=yes
 CYPRESS_CONFIG=false
diff --git a/docker/.env-non-dev b/docker/.env-non-dev
index 726b0bb167bf..cf4764221c28 100644
--- a/docker/.env-non-dev
+++ b/docker/.env-non-dev
@@ -39,7 +39,7 @@ PYTHONPATH=/app/pythonpath:/app/docker/pythonpath_dev
 REDIS_HOST=redis
 REDIS_PORT=6379
 
-FLASK_ENV=production
+SUPERSET_ENV=production
 SUPERSET_ENV=production
 SUPERSET_LOAD_EXAMPLES=yes
 SUPERSET_SECRET_KEY=TEST_NON_DEV_SECRET
diff --git a/docs/docs/contributing/local-backend.mdx b/docs/docs/contributing/local-backend.mdx
index 5056f167369d..e8dc5403eb55 100644
--- a/docs/docs/contributing/local-backend.mdx
+++ b/docs/docs/contributing/local-backend.mdx
@@ -42,7 +42,7 @@ superset load-examples
 
 # Start the Flask dev web server from inside your virtualenv.
 # Note that your page may not have CSS at this point.
-FLASK_ENV=development superset run -p 8088 --with-threads --reload --debugger
+superset run -p 8088 --with-threads --reload --debugger --debug
 ```
 
 Or you can install via our Makefile
@@ -66,7 +66,7 @@ make pre-commit
 via `.flaskenv`, however if needed, it should be set to `superset.app:create_app()`**
 
 If you have made changes to the FAB-managed templates, which are not built the same way as the newer, React-powered front-end assets, you need to start the app without the `--with-threads` argument like so:
-`FLASK_ENV=development superset run -p 8088 --reload --debugger`
+`superset run -p 8088 --reload --debugger --debug`
 
 #### Dependencies
 
@@ -93,7 +93,7 @@ def FLASK_APP_MUTATOR(app):
 Then make sure you run your WSGI server using the right worker type:
 
 ```bash
-FLASK_ENV=development gunicorn "superset.app:create_app()" -k "geventwebsocket.gunicorn.workers.GeventWebSocketWorker" -b 127.0.0.1:8088 --reload
+SUPERSET_ENV=development gunicorn "superset.app:create_app()" -k "geventwebsocket.gunicorn.workers.GeventWebSocketWorker" -b 127.0.0.1:8088 --reload
 ```
 
 You can log anything to the browser console, including objects:
diff --git a/superset/config.py b/superset/config.py
index d62003991a8f..b3e4121cf8a0 100644
--- a/superset/config.py
+++ b/superset/config.py
@@ -246,7 +246,7 @@ def _try_json_readsha(filepath: str, length: int) -> str | None:
 ]
 
 # Whether to run the web server in debug mode or not
-DEBUG = os.environ.get("FLASK_ENV") == "development"
+DEBUG = os.environ.get("FLASK_DEBUG")
 FLASK_USE_RELOAD = True
 
 # Enable profiling of Python calls. Turn this on and append ``?_instrument=1``
@@ -1507,8 +1507,12 @@ def EMAIL_HEADER_MUTATOR(  # pylint: disable=invalid-name,unused-argument
 # Configuration for environment tag shown on the navbar. Setting 'text' to '' will hide the tag.
 # 'color' can either be a hex color code, or a dot-indexed theme color (e.g. error.base)
 ENVIRONMENT_TAG_CONFIG = {
-    "variable": "FLASK_ENV",
+    "variable": "SUPERSET_ENV",
     "values": {
+        "debug": {
+            "color": "error.base",
+            "text": "flask-debug",
+        },
         "development": {
             "color": "error.base",
             "text": "Development",
diff --git a/superset/views/base.py b/superset/views/base.py
index e66fea0a48c2..3a45faf4bc19 100644
--- a/superset/views/base.py
+++ b/superset/views/base.py
@@ -333,6 +333,30 @@ def render_app_template(self) -> FlaskResponse:
         )
 
 
+def get_environment_tag() -> dict[str, Any]:
+    # Whether flask is in debug mode (--debug)
+    debug = appbuilder.app.config["DEBUG"]
+
+    # Getting the configuration option for ENVIRONMENT_TAG_CONFIG
+    env_tag_config = appbuilder.app.config["ENVIRONMENT_TAG_CONFIG"]
+
+    # These are the predefined templates define in the config
+    env_tag_templates = env_tag_config.get("values")
+
+    # This is the environment variable name from which to select the template
+    # default is SUPERSET_ENV (from FLASK_ENV in previous versions)
+    env_envvar = env_tag_config.get("variable")
+
+    # this is the actual name we want to use
+    env_name = os.environ.get(env_envvar)
+
+    if not env_name or env_name not in env_tag_templates.keys():
+        env_name = "debug" if debug else None
+
+    env_tag = env_tag_templates.get(env_name)
+    return env_tag or {}
+
+
 def menu_data(user: User) -> dict[str, Any]:
     menu = appbuilder.menu.get_data()
 
@@ -346,17 +370,6 @@ def menu_data(user: User) -> dict[str, Any]:
     if callable(brand_text):
         brand_text = brand_text()
     build_number = appbuilder.app.config["BUILD_NUMBER"]
-    try:
-        environment_tag = (
-            appbuilder.app.config["ENVIRONMENT_TAG_CONFIG"]["values"][
-                os.environ.get(
-                    appbuilder.app.config["ENVIRONMENT_TAG_CONFIG"]["variable"]
-                )
-            ]
-            or {}
-        )
-    except KeyError:
-        environment_tag = {}
 
     return {
         "menu": menu,
@@ -367,7 +380,7 @@ def menu_data(user: User) -> dict[str, Any]:
             "tooltip": appbuilder.app.config["LOGO_TOOLTIP"],
             "text": brand_text,
         },
-        "environment_tag": environment_tag,
+        "environment_tag": get_environment_tag(),
         "navbar_right": {
             # show the watermark if the default app icon has been overridden
             "show_watermark": ("superset-logo-horiz" not in appbuilder.app_icon),