[4] Dayton began to be settled in the early 19th century, with a town survey done and a "public well" established in 1832.

By 1860 the town had male and female academies, a hotel, cotton gin, oil mill, blacksmith shop, tavern, cabinet shop, drug store, and several general merchandise stores.

One of the survivors, the William Poole House, is listed on the National Register of Historic Places.

According to the United States Census Bureau, Dayton has a total area of 1.0 square mile (2.6 km2), all land.

[2] The town sits on a ridge that drains southeast to Dry Creek and northwest to Little Dry Creek, both tributaries of Chickasaw Bogue, which flows west across the county to the Tombigbee River.

The climate in this area is characterized by hot, humid summers and generally mild to cool winters.