The small village got its name from Onon B. Dahle, who opened a store there in 1853. In early history the community's name was spelled “Dahleville.” Daleyville once had two blacksmith shops, a wagon shop, a post office, a shoe shop, a garage and general store, a physician and a surgeon, a telephone exchange, and a school. The Onon B. and Betsy Dahle House still stands just off Highway 78 and is on the National Register of Historic Places.
