Eden is a fairly common outcome in English of a Brittonic river name that can be reconstructed as *ituna ('to gush forth').

The Parish Council Web site states that "Castle Eden has its origins in the 10th century when King Reinwald led a campaign of Danish raids and land acquisition".

Ownership passed among various Danes until it was eventually taken by Bishop Cutheard and given to Ealfrith; just prior to the Norman Conquest the estate was owned by Tilred.

Other families such as the Savilles owned their rope works and bleachery for sail cloth manufacturing, making the village, at the start of the 19th century, a fairly industrious one.

[9] There was a great deal of uncertainty in 2015 about the future of the church due to "dwindling members, soaring running costs and retiring volunteers".

[10] As of February 2021, however, the Parish Council Web site stated that the church "is open for Sunday services" and is "part of a United benefice with Blackhall and Hesleden St.

[11] As of early February 2021, the undated Parish web site states that "in recent times the village has expanded with the building of new houses on the site of Nimmos brewery ... whilst Castle Eden Dene has regained its reputation as one of the most spectacular places to visit in County Durham and is a National Nature Reserve".