The first settler was Elijah Lincoln in 1830, who established a land claim one and a half miles southwest of present Bunker Hill.

In 1834, County Surveyor Luke Knowlton entered 80 acres (320,000 m2) of land that now cover the center of Bunker Hill.

On December 25, 1835, Moses True of Salisbury, New Hampshire, John Tilden of Boston, Massachusetts, and Robert Smith of Alton, Illinois, visited Lincoln and formed a company to plat a town and improve the surrounding countryside.

At 6:45am CST on March 19, 1948, a tornado that originated in Alton, Illinois, blew through Bunker Hill, destroying the majority of the town's buildings and killing 19 people.

By the end of the day, National Guard units, US Army units, the Red Cross, Salvation Army, American Legion, VFW, and Illinois State Police had arrived to restore order and provide assistance to the citizens of Bunker Hill.

The Army and National Guard established patrols to minimize looting, and the State Police set up road blocks to keep sightseers away.

The Red Cross, Salvation Army, and Lebanon American Legion opened food stations to feed the volunteers and homeless citizens of the town.

By evening, the Red Cross had pitched tents in front of Meissner School to house the newly homeless citizens.

The pavilion, which had been used as a bandstand for community events, was not rebuilt after the tornado, instead being replaced by a flagpole and memorial to local military veterans.

In 1883, the military academy was established in the aging building, offering strict instruction to local children as well as the cadets.

Bunker Hill is the home of one of four statues of Abraham Lincoln sculpted by William Grandville Hastings.

The cost of the granite base was raised through voluntary subscription, and the bronze casting of Lincoln was shipped from Philadelphia.

1904– In Ever Lasting Memory of The Conflict By Which The Union In Which They Took Part This Statue of Abraham Lincoln Was Presented To the Citizens of Bunker Hill By the Soldiers of Company B of the First Missouri Cavalry, Charles ClintonThe statue also includes Lady Liberty kneeling at the base, etching the words "with malice toward none."

The Lincoln statue rests in the middle of the intersection of North Washington (IL Route 159) and Fayette streets.

The Bunker Hill City Cemetery, located in the 600 block of East Warren Street, is home to the Soldiers Monument honoring those who fought and died for freedom and liberty.

A special re-dedication ceremony was held on September 17, 2016, as part of the 2016 Fall Fest sponsored by the Bunker Hill Chamber of Commerce.

Brittany Shooting Park is located north-northeast of town on East Prairie Dell Road, about 4 miles (6 km) north of Bunker Hill off IL 159.