The community's name is either an alteration of a Mr. Othneil – the area's first gristmill owner or a supposed translation of the name Habermill (Haber being a German dialect word for Hafer, "oats").

Following the Civil War, a colony of freedmen, freed slaves, settled in the eastern part of Oatmeal.

[2] The settlement, known as Stringtown, included homes, a building used as a church and school, and Burnet County's only all-black cemetery.

[5] Ken Odiorne, a local resident, started the tradition by writing to the major producers of oatmeal at the time to ask for assistance.

[3] The climate in this area is characterized by hot, humid summers and generally mild to cool winters.