Schalksmühle is located in the hills of the Sauerland, and the altitude of the 38.2 km² area varies between 183 m (Pulvermühle) and 502 m (east of Sonnenscheid) above sea level.
The oldest written documents on the municipality date back to 1350, when the farmers of Hülscheid formed a free duchy.
Schalksmühle itself was first mentioned on May 1, 1407 in a document by archbishop Friedrich of Cologne, when Gerwin of Altenbreckerfeld, a merchant, donated an altar to the church of Breckerfeld.
Before 1969 the coat of arms of the municipality was very similar to the current one, except that the bottom part of the shield was a simple golden field.
Both were designed by Otto Hupp, based on an idea of Fritz Thomée, former Landrat of the district Altena.
This originated when a young man (Klaus Floeren) from Iserlohn worked for some time in the town of Bedlington and met his future wife (Muriel Binks) there.