Calallen's name comes from Calvin Joseph (Cal) Allen (1859–1922), a prominent early rancher.

Allen owned a 4,000-acre (16 km2) cattle ranch on which the Calallen Independent School District is now located.

Allen donated land to the St. Louis, Brownsville and Mexico Rail Line as right-of-way; in exchange, the railroad agreed to place a depot on Allen's property.

Allen then subdivided the land adjacent to the depot and established a townsite there.

Founded in 1910, Calallen was annexed by the city of Corpus Christi in 1970.