The settlement was named Milton after poet John Milton. In 1817, it became West Milton because of a possible conflict with another town named Milton. The village was incorporated in 1834.
Early residents were especially fond of the Cascades, a water fall that is located behind what used to be the West Milton Inn (now a furniture store) at the corner of State Route 571 and State Route 48. West Milton was also home to possibly the first lightning rod manufacturing firm in the country.