Fresh install of El Capitan(10.11), tried to install Android Studio version 1.21.
Android Studio was unable to find a valid JVM. Please download it from:
Java for OS X can't be installed on this disk. A newer version of this package is already installed
For it to work on El Capitan (OSX 10.11) you need to install the Java Development Kit, not only Java VM
After installing, the Andorid Studio runs as expected!