The parish of Finsland was established as a municipality on 1 January 1838 (see formannskapsdistrikt law).

During the 1960s, there were many municipal mergers across Norway due to the work of the Schei Committee.

The word finn could be referring specifically to the plant Nardus stricta or to "moorland" or "wilderness" in general.

There are also farms nearby called Finsdal and Finsådal, so the first element is a common local name.

[4] The municipal council (Herredsstyre) of Finsland was made up of representatives that were elected to four year terms.