Its name is derived from a species of cinnamon, which is called "canelón", growing along the banks of the homonymous river.

It lies on the west bank of the river Arroyo Canelón Chico.

On 23 March 1916, it was renamed to "Canelones" and its status was elevated to "Ciudad" (city) by the Act of Ley Nº 5.400.

[3] In 2010, the Intendencia de Canelones had recorded a population of 25,961 for the municipality during the elections.

In 1987 the cold-storage facility "Frigorífico Canelones" was founded, which ever since became the principal industry of the city.