Theo left Home and Away because he was torn between staying in Summer Bay with his family and leaving with his love interest, Lacey. Lacey, struggling with grief over her mother's death and complicated family issues, asked Theo to leave town with her for a fresh start. After a difficult decision, Theo chose to leave Summer Bay, leading to his exit from the show. Additionally, Theo's departure was marked by dramatic events including a life-threatening accident after confronting someone involved in Lacey's mother's death, which ultimately led to his death on the show.