It was known to the Choctaws, Chickasaws, and Creeks who lived in the area as Tiyuk Hekia (Standing Pine); many years later, when it was incorporated, it became known as Overton.

In 1875, the Henderson and Overton Branch Railroad, 16 miles (26 km) long, was completed and was later joined by the International-Great Northern.

When the well came in, Overton shared in Joiner's success, as churches, schools, and a refinery were built.

But by the end of World War II the population had declined by half—reaching just 2,000 in the 1950s and remaining at that level through the 1970s.

The Republic of Texas operated within the city limits from the early 2000s, up until the building was mysteriously burned down.

Overton has a historical voting base consisting primarily of older, Republican-leaning voters.

As of the 2020 United States census, there were 2,275 people, 826 households, and 580 families residing in the city.

Overton is represented in the Texas Senate by Republican Kevin Eltife, District 1.

The Overton Economic Development Corporation (EDC) is a community team made up of resident executives and business owners, responsible for attracting new investment and helping expand existing businesses within the city.

They evaluate incentives for businesses to locate or expand in the Overton area and base their findings on taxes assessed and paid, the number of jobs created or retained, wages paid, local purchases of products and services, indirect employment gains and the general benefit of furthering the mission of the city of Overton Economic Development Corporation.

Funds may be used in land lease/purchase, building lease/purchase, rehabilitation or construction, capital equipment purchase, infrastructure improvements or employee training.

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