[3] The origin of its name derives from the 340 metres (1,120 ft) hilltop that was situated south of the settlement, a volcanic cone that first encountered during exploration of the island in the 16th century (and which scattered basaltic lava in its surroundings).

The populations were, therefore, dependent on gathering rainwater or collecting water from Rabo de Peixe or Ribeira Grande.

[6] By the 19th century, there 900 inhabitants in the parish, resulting in the construction (between 1802 and 1807) of the parochial church dedicated to Nossa Senhora dos Prazeres ("Our Lady of Pleasures").

[6] It was only in the 20th century that the parish developed initiatives to improve the quality of life in Pico da Pedra, which included the establishment of social centre, cooperative for habitation and consume, sports fields, a Casa do Povo, daycare (in 1961)[6] and seniors centres, and informative services.

[3] The growth of pedestrianism on the islands of the Azores was the impetus for the creation of the ecological association Amigos dos Açores, whose headquarters is located in Pico da Pedra.