We discuss the breakdown of spatial coherence in networks of coupled oscillators with nonlocal interaction. By systematically analyzing the dependence of the spatio-temporal dynamics on the range and strength of coupling, we uncover a dynamical bifurcation scenario for the coherence-incoherence transition which starts with the appearance of narrow layers of incoherence occupying eventually the whole space. Our findings for coupled chaotic and periodic maps as well as for time-continuous R\"ossler systems reveal that intermediate, partially coherent states represent characteristic spatio-temporal patterns at the transition from coherence to incoherence.