Since time immemorial, Wudinna has been part of the country visited from the east coast of Eyre Peninsula, seasonally and for ceremonial and special purposes, by the Barngarla people.

The area was first settled by Europeans in 1861, after Robert George Standley lodged a claim for 10 square kilometres (4 sq mi) of land surrounding what was then referred to as Weedna Hill.

[7][failed verification] In 2023, it won the South Australian Department of Primary Industries and Regions Agricultural Town of the Year award.

Mount Wudinna, located 12 kilometres (7 mi) north-east of the township, is listed on the South Australian Heritage Register.

[12] Wudinna has a semi-arid climate (Köppen: BSk/BSh), with hot, dry summers and mild, somewhat wetter winters.