[4] Yale's founding in 1895 is attributed to a local farmer, Sterling F. Underwood, who established a post office by that name in his general store, about 1.5 miles (2.4 km) east of the present town.

When the Eastern Oklahoma Railway built its line across Payne County, a group led by George W. Canfield began a different townsite also within Eagle Township that would be closer to the railroad, at its planned junction with the Missouri–Kansas–Texas Railroad.

By the end of 1914, the combined Yale and Cushing fields were producing 220,000 barrels a day.

Town officials have tried to stem the decline by promoting Yale as a retirement location.

[6] Yale is 20 miles (32 km) east of Stillwater on State Highway 51.

[6] According to the United States Census Bureau, the city has a total area of 0.9 square miles (2.3 km2), all land.

The primary source of Yale's water supply is Lone Chimney Lake.

The lake's level has been declining for several years because of prolonged drought conditions and high water consumption of water by Yale and other Oklahoma towns that rely on this lake as their primary source.