The district serves Iola and unincorporated areas in northwestern Grimes County.
Both schools as well as the district's administrative offices are housed on a single campus at the corner of FM 39 and Fort Worth Street.
[1] As of the 2008-2009 school year, Iola ISD enrolled a total of 497 students.
[3] The ethnic composition of the district was 85.71% White, 10.87% Hispanic, and 3.42% African American.
[8] In July 2024, the ACLU of Texas sent the Iola Independent School District a letter, alleging that the district's 2023-2024 dress and grooming code appeared to violate the Texas CROWN Act, a state law which prohibits racial discrimination based on hair texture or styles, and asking the district to revise its policies for the 2024-2025 school year.