Traditional "washed-curd" Colby is pressed into a cylindrical form called a longhorn, and cures into an open texture with irregular holes.

In 1882, Ambrose and Susan Steinwand established a cheese factory near Colby, Wisconsin, on a 160-acre (65 ha) site they had purchased five years before.

According to some sources, Joseph had attended a cheesemaking course and was specifically interested in developing a new type of cheese; according to others, he neglected to drain the excess moisture after adding cold water and accidentally discovered the result.

[9] In 2021, the bill was introduced again in an Assembly committee, with Joseph Steinwand's great-granddaughter speaking in support of the measure.

Supporters of the bill said that it commemorates Wisconsin's dairy history, while critics argued that a special designation for Colby could undermine the sales of other cheeses, including cheddar and mozzarella, that are also produced in the state.

[12] Monterey Jack has a similar manufacturing process, with the difference of allowing the curd to sit after draining the whey until it reaches a pH of 5.3.

[14] The reduced acidity of the curd results in a mild and milky flavor, with its orange coloring derived from annatto.

[13][16] Compared to more crumbly cheeses such as an English Cheshire, Colby is relatively elastic because its whey is drained at a high pH.

[11][16] The higher moisture content of Colby compared to cheddar leads to a weak body and it does not keep its quality for as long.

It often develops a bitter taste and becomes extremely soft after 100 days, and is typically recommended to be consumed within three months.

[16][19] Foodborne bacteria including Listeria monocytogenes, Staphylococcus aureus, and Salmonella species are less likely to grow in hard or semihard cheeses such as Colby, with a moisture content less than 50%.