Settlement began in the 1790s, following the American Revolutionary War,[8] as migrants moved into the area from the Piedmont frontiers of Virginia and North Carolina.

The county historical society asserts that French traders noted encountering the Melungeons in the late 1600s in the area that is now east Tennessee.

[9] Such early settlement is not supported by the research of Edward Price, a cultural geographer who wrote a 1950 dissertation on the Melungeons;[10] Dr. Virginia DeMarce, a professional genealogist;[11] and Paul Heinegg, a genealogist;[12] each of whom has documented the migration of ancestors of the first families known as Melungeon from Virginia and North Carolina in the late eighteenth century When Hancock County was formed from parts of Hawkins and Claiborne counties in the 1840s, Greasy Rock was chosen as the county seat.

The city was renamed in honor of William Henry Sneed (1812–1869), a Confederate and attorney from Knoxville who helped legally defend the new county when several residents sued in an attempt to block its creation.

[14] According to the United States Census Bureau, the city has a total area of 2.3 square miles (6.0 km2), all land.

[15] As of the 2020 United States census, there were 1,282 people, 573 households, and 369 families residing in the town.

Melungeons, a so-called "tri-racial isolate", are also present in this area, especially in the Vardy Valley, on the other side of Newman's Ridge.

The organization provides access to archival material related to the community and maintains a small museum displaying aspects of traditional mountain life, such as was practiced by the Melungeons.