Kyle is in eastern Hays County and is bordered to the south by San Marcos and to the northwest by Mountain City.

In higher education, Kyle sits just seven miles (11 km) north of Texas State University located in San Marcos and is home to the Hays campus of the Austin Community College District which has been fully operational since 2014[10] with the college district's Public Safety Training Center opening a few years afterward.

The Amtrak Texas Eagle passenger rail line has a stop located 10 mi (16 km) south of Kyle in San Marcos.

Originally, the line railline was to cross over to Mountain City, located three miles north of Kyle, but when addressing with his secretary, Ira Evans, it was seen as more cost effective to build a straight track from Austin to San Marcos which went right through the private lands of Fergus Kyle and his wife, Anne Moore.

Following an agreement between the I&GN and the Kyle and Moore families for $1 and the enhanced value of the developed land of 200 acres.

The town originally consisted only of 6x3 city blocks for both commercial and residential zoning as well as a combination train depot and separate cotton platform along the tracks.

The first lots were sold at an auction on September 25 under the now historically designated 'Auction Oak' with the railroad offering free rides and food for attendees from Austin.

The new town drew residents and businesses from Mountain City as well as Blanco, four miles west, as well as independent farmers and ranchers in the county.

Tom Martin operated the first business in Kyle as a saloon-meat market combo, the first of four saloons to open in the town's inaugural year.

From 1892 to 1901, Kyle was the childhood home of Pulitzer Prize-winning author Katherine Anne Porter.

The Katherine Anne Porter Literary Center hosts readings by visiting writers.