[4][5] Historically, the parish of Folldal was a part of Alvdal Municipality since 1838 (see Formannskapsdistrikt law).

The first element comes from the name of the local river Folla which has an unknown meaning (perhaps something like "the broad one").

On 3 November 1917, a royal resolution changed the spelling of the name of the municipality to Folldal.

The official blazon is "Gules, a pickaxe Or in bend issuant from base sinister" (Norwegian: I rødt en skrått framvoksende gull hakke).

This means the arms have a red field (background) and the charge is a diagonal pickaxe.

The pickaxe has a tincture of Or which means it is commonly colored yellow, but if it is made out of metal, then gold is used.

The pickaxe was an important tool of miners and thus symbolizes the mining industry, which was the reason for Folldal municipality to be established in 1914.

Until 1878, ore was transported by horse-drawn vehicles to the Lovise smelter located in neighboring Alvdal municipality.

Operations were restarted in 1906 when ore was transported by a 34-kilometre (21 mi) long cable car (Northern Europe's longest) to the smelter.

Then the mining and ore dressing moved to Tverrfjellet at Hjerkinn, in neighboring Dovre municipality, approximately 30 kilometres (19 mi) from Folldal.

The municipal council (Kommunestyre) of Folldal is made up of 17 representatives that are elected to four year terms.

The municipality of Tynset lies to the northeast, Alvdal is to the east, Stor-Elvdal is to the southeast, Sør-Fron and Sel are to the south, and Dovre is to the west.

Norway's longest seter valley, the 55-kilometre (34 mi) long Einunndalen, lies within the municipality.

Folldal has a subarctic climate (Dfc) with short, cool summers and long, cold winters.