The name comes from the Old English words fearn ('fern') and lēah ('open land in woodland'), and thus meant 'clearing characterised by ferns'.
When first recorded in the Domesday Book, it was in the Hundred of Morley and was part of the King’s land, with Ilbert de Lacy being the tenant-in-chief.
The Manor and Estates of Farnley were held in 1086 by Swain Fitz Alric and then a number of his descendants until it passed by marriage to Sir James Danby in 1497.
Although the rebellion failed from lack of support, the betrayal led to 26 participants being condemned to death, with 16 hanged, drawn and quartered in York.
Farnley has a lower set of shops (in what was originally Bawn village) consisting of a pizza takeaway, a newsagent, a mini-mart, a butcher and Cow Close Community Corner.
It was part of the ancient manor of Farnley, ownership of which was split and held by families including the Harringtons, Nevilles, Brudenells, Danbys and finally, the Armitages.
A field of Harper Farm has the name 'Castle Hill', leading to a local tradition (which appears to have originated with an estate manager of Farnley Hall) that it was the site of a Roman marching camp.
There was industrial development of the significant natural resources in the area from the early modern period (if not earlier).
As the population increased, St James's church and the Lancasterian School were built, both of which originally served as chapels of ease.
New Farnley now has a village co-op which includes a post office, Craven's Fish and Chip shop which is over 120 years old and said to be haunted, also a pub, a barber shop, a beauty salon, Cobden Primary and Lawns Park Primary Schools, The Farnley Academy, and two churches.
It is a hub for the activities of the village, is home to a local Mums and Tots group, and hosts several community nights over the year, e.g. at Halloween or Christmas.
They're based at the Farnley Sports & Social Club (locally known as 'The Nest'), and play their home games on the pitches close by.
New Farnley has its own Ladies team, currently playing their home games on the Chapel Lane ground, next to Lawns Park Primary, they are currently in the third division of the West Riding Women's League.