The Otter Lake post office opened on February 12, 1873, with postmaster John M. McDonald.

In 1874, Page & Benson pine lumber company platted the community.

The village was named after the nearby body of water which had numerous otters.

[2] As of the census[7] of 2010, there were 389 people, 144 households, and 99 families living in the village.

25.0% of all households were made up of individuals, and 7.7% had someone living alone who was 65 years of age or older.

The racial makeup of the village was 97.25% White, 1.14% Native American, and 1.60% from two or more races.

17.5% of all households were made up of individuals, and 5.2% had someone living alone who was 65 years of age or older.