The Native Americans called the lake "Oussuk", meaning "stony pond."

An historical marker marks the site of Machin's Mill on Lakeside Road.

The reasons for this name change remain obscure, but are probably related to its location in Orange County.

[6] Because the lake is 800 feet (240 m) above sea level,[6] its outlet stream (sometimes called Bushfield Creek) became a very popular site of mills.

[6] During the 19th century, the shores of the lake became a popular location for summer cottages.

Transportation to the lake and the hamlet was difficult until 1895, when trolley service was established between the City of Newburgh and the Village of Walden, and Orange Lake, approximately the halfway point, became a popular stop.

Soon after this Newburgh and Walden Electric Railway initiated service, a highly successful amusement park opened on the south shore of the lake.

Our Lady of the Lake Roman Catholic chapel, a mission church of St. Patrick's parish in the City of Newburgh, was constructed in 1939 and remains in active service today.

[6] Pine Point was a highly successful resort on a peninsula off the southern shore of the lake.

During the big band era, many nationally known recording acts appeared at the resort, including Frank Sinatra and Benny Goodman.

[6] In the late 1940s Mickey Spillane and a friend of his from the Army bought a woodlot on Rock Cut Road and lived in a house they built while he was writing for comic books.