The community is named for one of the first settlers of European descent, Harry C. Sutton, who arrived in 1854.

[citation needed] In 1903 the Traverse City, Leelanau, and Manistique Railroad began a route between Traverse City to the South and Northport to the North, stopping at Suttons Bay, as well as Hatch's Crossing, Fountain Point, Bingham, Keswick, and Omena.

"[citation needed] The town is home to the county's only movie theater, opened in 1946.

Its fare consists of unique art house films, and occasionally the theater hosts plays and concerts.

[citation needed] The town has a clothing store that has been owned by one family over four generations called "Bahles."

The original store started as a "dry-goods" business in 1876 by Lars Bahle, an immigrant from Norway.

[citation needed] Suttons Bay is also home to one of the oldest continuously operated food establishments in the entire region.

[citation needed] Like many other communities in northern Michigan, Suttons Bay relies heavily on tourism to generate revenues for its economy.

[citation needed] In August 2013, the community held an event to attempt to break the Guinness Book of World Records for most kayaks and canoes rafted together.

The effort followed an attempt a year earlier, which missed the record of 1902 boats set by a group near Inlet, New York in 2011.

[6][7] According to the United States Census Bureau, the village has a total area of 1.25 square miles (3.24 km2), all land.