We discuss the breakdown of spatial coherence in networks of coupled oscillators with nonlocal interaction. By systematically analyzing the dependence of the spatiotemporal 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 Rössler systems reveal that intermediate, partially coherent states represent characteristic spatiotemporal patterns at the transition from coherence to incoherence.