On 5 November 1912 the name was changed from Hjelmen to Hjelme by royal resolution.

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

The name is the plural form of hjalmr which means "helmet", likely referring to a helmet-shaped mountain on the island near the farm.

On 5 November 1912, a royal resolution changed the spelling of the name of the municipality to Hjelme.

[7] The municipal council (Heradsstyre) of Hjelme was made up of 13 representatives that were elected to four year terms.