The town's name is believed to derive from an Aboriginal expression meaning "place of big gums shading the water hole".

The earliest European settlers in the area included Andrew and Robert Scott, who established the first run of the name.

[5] Among the historical buildings are a 1872 prison cell built from red and yellow gum, a Tudor-style post office, several 19th-century hotels and pubs, and a four-storey water tower from 1886.

There is also an agricultural machinery museum housing pieces from the history of farming in the Mallee and Wimmera districts.

[6] Warracknabeal's bounded locality includes the rural neighbourhoods of Batchica 36°11′10″S 142°23′54″E / 36.1862°S 142.3982°E / -36.1862; 142.3982 (Batchica), whose post office opened as Yellangip South in 1908, renamed Batchica in 1909, and closed in 1931; Challambra 36°14′46″S 142°31′53″E / 36.2460°S 142.5315°E / -36.2460; 142.5315 (Challambra), whose post office opened as Challamba Dam (sic) around 1902, which was renamed Challamba in 1905 and closed in 1918; and Mellis 36°17′47″S 142°28′57″E / 36.2963°S 142.4824°E / -36.2963; 142.4824 (Mellis), whose post office opened around 1907 and closed in 1954.

[5] The formally recognised traditional owners for the area in which Warracknabeal sits are the Wotjobaluk, Jaadwa, Jadawadjali, Wergaia and Jupagik nations.

[10] Of the people aged 15 and over, 10% reported having completed year 12 as their highest level of educational attainment.

[10] In the 2016 census, just over half (54.0%) of the population of Warracknabeal reported being employed full time, 34.9% part-time, 6.1% were away from work and 5% were unemployed.

[11] Almost a third (31.8%) of people in Warracknabeal reported doing voluntary work through an organisation or group in the 12 months before the election.

Notably, Bailey Watts had the dubious distinction of breaking the world record for most ducks in a row while playing for St Mary’s.

The former town hall and theatre complex (built 1939–40), added to the Victorian Heritage Register in 2009, is now used for civic purposes.

Y-Fest incorporates an Easter Saturday Street Parade, a three-day Vintage machinery rally at Wheatlands Museum, a four-day golf tournament, a three-day art show, an Easter Saturday race meeting, and a water ski spectacular.