According to the notes of Alfred Howitt, the area was known as Koϊ-wirip in Woiwurrung language, which refers to the ti trees.

[3] In 1838 the area approximating Burnley's present open space lying in a loop of the Yarra River was reserved as the Survey Paddock.

The area was named after William Burnley, pioneer land purchaser in Richmond, local councillor and parliamentarian.

[4] Burnley was developed in the 1850s as part of the wider Richmond district as Melbourne expanded eastwards to the Dandenong Ranges.

Industrial development followed in the 1860s with workers' housing established within walking distance of the many local factories manufacturing everything from clothing to pipe organs.

One of them has been opened up to the river by the cutting of a channel to improve stream velocity to clear upstream floodwaters from Kew.

The quarry hole became a dock depot for silt-dredging craft, and the channel also resulted in the formation, mid-stream, of Herring Island.

Quite near the site of the temporary school is a remnant dead tree, evidence of the traditional Aboriginal inhabitants.

In 1991 the adjacent horticultural college celebrated its centenary, by when it was famed for the training of career horticulturists and as the metropolitan venue for demonstrations for amateur gardeners.

With a large number of historic small homes in narrow streets, Burnley has a diverse range of residential architecture as well as many public buildings including churches, hotels, shops and factories including the former factory and workshop of the pipe organ building firm of George Fincham & Sons, Australia's most prolific pipe organ builder from the 1862 until the late 20th century.

Burnley is home to Richmond Soccer Club which play in the Victorian State League Division 1.

[10] A light industrial park opened in the early 2000s (decade), housing General Electric Australia and Amrad Pharmaceutical Research.

More recently commercial business park Botanicca was constructed on Swan Street in the 2010s to house the head offices of David Jones and Country Road along with Harris Scarfe and Forever New.