It was first observed by Jens Esmark in 1806, and named by him from δατεῖσθαι, "to divide," and λίθος, "stone," in allusion to the granular structure of the massive mineral.

The type localities are in the diabases of the Connecticut River valley and Arendal, Aust-Agder, Norway.

Associated minerals include prehnite, danburite, babingtonite, epidote, native copper, calcite, quartz and zeolites.

It occurs as a secondary mineral in mafic igneous rocks often filling vesicles along with zeolites in basalt.

Unlike most localities throughout the world, the occurrence of datolite in the Lake Superior region is usually fine grained in texture and possesses colored banding.