[1] Although there was a small drift mine on the edge of the village which closed in the 1970s, Lanchester's economy was mainly based on agriculture.

Lanchester was first known by the name Longovicium in the 2nd century AD, which is derived from Common Brittonic longo- ("ship") + *wicā- ("a Roman vicus").

The Lan- part of the modern name is from Old English lang (> "long"), but that may simply have been a reinterpretation of the British Celtic-derived name by Germanic settlers.

[2][3] The earliest occupation on the site is the Roman auxiliary fort located just southwest of Lanchester (grid reference NZ159469.

[8] To profit from this Anthony Bek created a Deanery and College of Canons at the church in 1284 and extended it to accommodate the increased numbers of clergy.

[10] The church supplemented its income by monopolising the sale of religious items such as holy water to the surrounding villages.

[8] By the time Henry VIII dissolved the monasteries the College and Deanery were abolished and the church returned to perpetual curacy.

[8] To the north west of Lanchester was the site of a chapel at Esp Green dedicated to the Blessed Margaret.