The surrounding area of Madona had been populated in earlier times, which is confirmed by discoveries of old burial grounds in the city's vicinity.

Madona is first mentioned in writing in 1461, when Archbishop Sylvester began renting the lands of Birži Manor.

Empress Catherine II bought the lands back as a present to the Serbian-born General Maxim Zorić.

According to another version, Madona got its name from Birži Manor, which German exonym is Madohn or Modohn.

The Latvian Central Statistics Department reported 9,242 citizens as of 1 January 2007, with 888 people per square kilometre (2,300 people/sq mi)s).