Caro is located northeast of Flint and east of Saginaw in Michigan's Upper Thumb region.

Caro was founded on the ridge just above the site of the Chippewa Village that early on stood at the Oxbow in the Cass River that was known by Native Americans as "Pe-See-Kop-To-Qua-Yone."

[6] Paschel Richardson of Tuscola Village purchased land for logging on the future site of Caro or Section 3, Indianfields Township, also in 1848.

The Johnson brothers, Daniel and Soloman, began to build the City of Zilwaukee, Michigan, from Cass River Pine timber that they logged from the land at the future site of Caro and that they bought in 1849.

Gardener and Ephraim Williams about 1830 to the 1840s were agents of the American Fur Company that had a trading post on the Cass River.

Gardner Williams would purchase tracts of land next to the Chippewa Village in the 1850s that amounted in size to be more than what was the area of Caro.

[7] Later Samuel P. Sherman would purchase 63 acres (250,000 m2) in the north half of the northwest quarter of section 3 in Indianfields Township on September 8, 1852.

His son, William E. Sherman, had worked in the lumber industry nearby on the Cass River for some time prior to 1852 and William's favorable report persuaded his father to visit in 1851 and afterward purchased several tracts of land in addition to his initial purchase.

In 1859, William E. Sherman built another hotel, which he named the Centerville House, based on the location being near the center of the county.

On July 23, 2007, Governor Jennifer Granholm announced Caro as a community chosen by the Michigan State Housing Development Authority (MSHDA) to take part in the Blueprints for Downtowns program.

The city would receive a comprehensive, market-driven strategy toward developing an action-oriented downtown that would result in economic growth, job creation and private investments.

Elected to the city council were Mike Henry, Rick Lipan, Joe Greene, Charlotte Kish, Amanda Langmaid, and Richard Pouliot.

[11] Caro is located in central Tuscola County, surrounded by Indianfields Township on its west, south, and east.

Founded in 1930, the airport was significantly improved under Michigan Department of Transportation grants throughout the 1980s and 1990s, to add and lengthen the runway and taxi-ways, as well as a new administration building and additional hangar space.

Following, it converted to an institution for the developmentally disabled, and now operates as an inpatient psychiatric hospital for mentally ill adults.

[14] Local radio stations licensed to serve Caro are commercial broadcasters WKYO AM and WIDL FM.