The city was named for C. Nelson Wheeler, the original owner of the town site.

[4][5] The village was named as the county seat in 1873,[6] and its position survived a challenge by Superior in 1889.

According to the United States Census Bureau, the city has a total area of 0.82 square miles (2.12 km2), all land.

[7] As of the census[10] of 2010, there were 488 people, 243 households, and 143 families residing in the city.

37.4% of all households were made up of individuals, and 20.1% had someone living alone who was 65 years of age or older.

41.7% of all households were made up of individuals, and 25.5% had someone living alone who was 65 years of age or older.

Former Major League Baseball player Russ Snyder, who starred in the 1966 World Series, lives in Nelson.