The inspectorate explored reasons behind high-needs pupils leaving mainstream schools in seven local authority areas in the East Midlands, published in Exploring Moving to Home Education in Secondary Schools.
It found that parents often decide to home school their children to avoid them being excluded or themselves being prosecuted for non-attendance.
Some parents reported that schools had applied indirect pressure to convince them to educate them at home.
Special educational needs, medical, behavioural or other wellbeing needs were mainly behind the decision-making.
Ofsted's chief inspector Amanda Spielman said home education was a "legitimate parental choice" and could be a "positive decision" when parents were well equipped to provide a good education.
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