The communities name may be derived from the Native American Cupeño or Luiseño language term pale, meaning "water.

After United States annexation of California following its victory in the Mexican–American War, Pala became known for its mineral resources, including gold and tourmaline.

[4]  Local Pala area miner and gem cutter Fred Rynerson noted the best years for San Diego Tourmaline Mining Company were from 1903–1910,[5] and the China trade customers were only interested in pink tourmaline cabochon material suitable for shaping vice gem quality for faceting.

Morganite also termed rose beryl was named by Dr. George F. Kunz at a meeting in December 1910 at the New York Academy of Sciences and put on display at American Museum of Natural History.

[9] In 1902 the purple-colored gemstone kunzite discovered near Pala by Dr. George F. Kunz and by 1903 was named in his honor while being displayed at Tiffany and Co. and American Museum of Natural History, New York.