Aurora was originally a German settlement. The town was originally called Salem and later Mount Carmel. Its current name was suggested because of the town's high altitude.
One of the original settlers to the area was John Stough, a Lutheran minister. The primary industries throughout the early and mid-19th century were farming and timber. In the late 1880s, the town became known as a resort area as the result of several large hotels which were built in the area. Some of these featured casinos, pools, and concert halls. In the 1930s an artist colony formed in the nearby Youghiogheny Forest area.