Located on land that was part of a land grant issued to Vicente de Ynojosa by Spain in 1797, a community existed in the area by 1800. After the railroad arrived, the area began to be settled by Anglo-Americans from the north. In 1927, La Villa became a shipping point on the San Antonio and Aransas Pass Railway.
In 1933, La Villa had a population of 100, and in 1947 there were 8 businesses and 200 people in the town. By 1957, there were still only 200 people in La Villa, but the town had a school, 2 churches, and 18 businesses. It wasn’t until the 1960s and 1970s that the population began to grow significantly, to its current number of just less than 2,000 people during the 1990 census. As of January 1, 2002, the estimated population of La Villa was 1,330.