[1] The town itself was founded before Indiana became the 19th state in 1816 and was located in Jefferson County at the time it was platted.

It was the original county seat from 1820 to 1874, before local leaders decided on a more central location at nearby Scottsburg, which created animosity between the residents of the two towns for several decades afterwards.

This area of the state was largely settled by people from the Upper South, traveling by the Ohio River.

Records were removed from the courthouse and transferred at night to avoid a civil war between residents.

[3] During the Civil War, Morgan's Raiders passed through Lexington on July 10–11, 1863, meeting little resistance upon entering the town.