According to legend, it was related to hobby of knight Sebastian, who is said to have been the founder of the town, of falconry.

After World War II, when it was customary to change names of German origin, the town was renamed Sokolov.

The eastern part of the municipal territory extends into the Slavkov Forest and includes the highest point of Sokolov, the hill Zelený močál at 797 metres (2,615 ft) above sea level.

[5] From 1867 to 1918, the town was part of Austria-Hungary, head of the Falkenau an der Eger District, one of the 94 Bezirkshauptmannschaften in Bohemia.

During World War II, in April 1941, the Stalag 359 prisoner-of-war camp was established in the town by the occupiers, however, it was relocated to Poniatowa in German-occupied Poland in September 1941.

The largest employer based in the town is Sokolovská uhelná, a major Czech mining company.

The town is also the starting point of a railway line heading to Kraslice and Mehltheuer in Germany.

[12] The Sokolov Castle was built on the site of a former water fortress in late Renaissance and early Baroque styles.