Oceanic islands are cradles for biodiversity with distinct life forms, like insular woodiness in plants. Various theories tried to explain this island syndrome. Recently, frequent volcanic activity and subsequent burial of vegetation by tephra were linked to woodiness. In a chronosequence of five aged tephra fields on the island of La Palma, we find a trend towards (insular) woodiness. Insular woody species predominate on young fields, whereas ancestral woody lineages increase with age. Nevertheless, a high similarity in functional trait space is maintained during succession. These findings highlight the general selection and filtering for woody species. However, insular woody species that have evolved woodiness on islands from continental herbaceous ancestors, show increased colonization ability of these extreme habitats during early succession after volcanic eruptions. This illustrates the acquired functional advantages of endemic lineages that evolved woodiness on islands and sheds light on the role of environmental filtering during evolution.