The area that became Telico was settled before 1856. It was first called Trinity City but was renamed in the mid-1850s to Telico after Telico, North Carolina. The town was based on agriculture and had a cotton gin that local farmers used for several decades until they renovated it in the early 2000s to create a wedding venue.
- Clyde Barrow, born near Telico, was an outlaw in the team Bonnie and Clyde, who traveled the Central United States during the Great Depression in the early and mid-1930s.
- Jason Massey, murderer of two teenagers. His case was featured on the popular crime show Forensic Files.