Named after the nearby Black Hills, over 29,000 interments of military veterans and their family members have taken place since its founding in 1948.

It is administered by the U.S. Department of Veterans Affairs (VA), which also operates the nearby Fort Meade National Cemetery.

Prominent features of the cemetery include its committal shelter, where memorial services and events are held, and the Avenue of Flags leading up to it.

In July 1947, Chief of the Memorial Division of the Quartermaster Corps George Horkan was placed in charge of surveying the Fort Meade area for a potential new cemetery site.

[3] Although Fort Meade had its own cemetery dating back to the 19th century, a number of factors prevented the VA from repurposing it.

Firstly, it was deemed too small in size;[3] originally, the VA considered moving the existing bodies to Fort Snelling to make room for new burials, but cancelled this plan after facing considerable pushback from local cities.

The land was transferred from public domain holdings, and the United States Department of the Army handled preparation of the grounds and construction of the first facilities.

[8] The first seven burials took place in private ceremonies held in September 1948, during the week leading up to the actual dedication of the cemetery.

These were all service members killed in action during World War II, whose unclaimed remains had been in storage at the Kansas City Quartermaster Depot.

[4][13] Speeches were delivered by Case; Harry Johnson, vice commander of the Tenth Air Force; and South Dakota Governor George T. Mickelson.

"[4] The dedication ceremony concluded with a flyover by the South Dakota Air National Guard's 175th Fighter Squadron, which dropped flowers from the sky.

In 1951, 229 trees and 1,200 shrubs were planted, metal gates and fencing were erected at the entrance, and the superintendent's home was built.

[20] The following year, the VA obtained an additional 181.32 acres (73.38 ha) of land through the Black Hills National Cemetery Boundary Expansion Act, which was signed into law by President Donald Trump on May 25, 2018.

[26] Those eligible for burial in the cemetery are veterans with a non-dishonorable discharge, active service members, their spouses, and dependent children.

[24] The committal shelter, dedicated on Memorial Day 1978, functions as a central events venue where services and tributes are held.

It is a one-story octagonal round building, partially dug out into the hill behind it, and has a total floor area of about 2,200 square feet (200 m2).

Like the administration ward, both buildings are similar in construction: they are simple rectangular structures on concrete foundations, with gabled roofs and double-hung sash windows.

These asphalt roads extend from the entrance south-westwards and terminate in a parking loop in front of the committal shelter.

Two World War II Lakota code talkers, John Bear King and Clarence Eugene Wolf Guts, are buried here.

[25][27] Three victims of a B-36 crash that occurred near Ellsworth Air Force Base on August 27, 1954, were buried at the national cemetery in the days following the incident.