Yankeetown was founded in 1923 by the Indiana politician and lawyer Armanis F. Knotts, who moved to the area because of his great love for hunting.

However, stories have it that the present name comes from a local mail carrier, an "unreconstructed Confederate," who frequently and derisively directed visitors to the settlement that he called "that Yankee town.

[3] Yankeetown was initially to be the western end of a 1930s proposed, but never actualized, Cross Florida Canal.

[7] The approximate coordinates for the Town of Yankeetown is located in south central Levy County at 29°1′52″N 82°43′12″W / 29.03111°N 82.72000°W / 29.03111; -82.72000 (29.031155, –82.720104).

[8] The outermost reaches of the town are located around the mouth of the Withlacoochee River and along the Gulf of Mexico.

[9] The climate in this area is characterized by hot, humid summers and generally mild winters.

As of the 2020 United States census, there were 588 people, 252 households, and 180 families residing in the town.

[14] As of the 2010 United States census, there were 502 people, 297 households, and 170 families residing in the town.

The YIWC has a contract with Levy County who provides staffing and books for the local library.