The station had substantial goods traffic based on the locally-grown strawberries, which led to the line's alternative name as The Strawberry Line.

The station was opened as the temporary terminus of the broad gauge line in August 1869.

The railway was extended to Wells in 1870, converted to standard gauge in the mid-1870s and then linked up to the East Somerset Railway to provide through services from Yatton to Witham in 1878.

Cheddar remained open for goods until November 1965, and even then a private siding kept the line in place until March 1969.

Most of the station buildings still exist in other uses, but the overall roof was taken down soon after the passenger service was withdrawn.