The precursor material to graphene aerogels is a hydrogel formed from an aqueous solution of graphene oxide. We investigate the time evolution of the physical and chemical properties of a graphene oxide suspension as it transitions to a hydrogel. Fully formed hydrogels undergo densification during reaction, forming mechanically stable monoliths. We demonstrate that the gelation process removes oxygen functional groups, partially re-forms the sp2 network, and creates bonds between graphene oxide sheets. Furthermore, these changes to the physical and chemical properties occur on exactly the same time scale, suggesting that they have a common origin. This discovery lends greater understanding to the formation of graphene oxide-based hydrogels, which could allow more flexibility and tunability in synthetic methods for graphene-like materials.