[3][7] Local lore claims that a group of Misery Native Americans, a branch of the Ojibwe or Chippewa nation,[3][10] settled on the southern shore of Lake Superior in the area in 1845.

[3][7][12] The community initially struggled for a number of years, and the individuals who had settled in Toivola were poverty-stricken and often paid considerably less than people in other areas.

Heideman, thought it would be a fine idea to name the community Urhola, after a Finnish word meaning the "Place of Heroes".

[13][15] However, a local herbalist, Mrs. Maria Kallioinen, had been in favor of the name Toivola from the early years; apparently her choice was the more popular.

[16] However, it was not until sometime later in 1901 that the community was actually named when it received its depot along the Copper Range Railroad; this would later develop into a larger station.