The population swells during holiday seasons to more than 4,000 people due to its proximity to the Coffin Bay National Park.

[1] The indigenous inhabitants of the Coffin Bay area are the Nauo Aboriginal people, who have lived there for tens of thousands of years.

[3] In 1957, the private town of Coffin Bay was laid out by Stanley Germain Morgan on section 132 of the cadastral unit of the Hundred of Lake Wangary.

[3] In 1966, BHP opened the Coffin Bay Tramway, between Port Lincoln and a site 8 kilometres (5 mi) south-east of the town, to convey lime sands.

[1][4] The historic former Coffin Bay Whaling Site at Point Sir Isaac lies within the locality and is listed on the South Australian Heritage Register.