The name originates from Clement C. Dyer, one of the "Old Three Hundred" of Stephen F. Austin's colonists.[1]
A post office opened in 1913. In 1914 the community, with 250 residents, had a lumber company. The post office closed in 1917. An oilfield opened in the mid-1930s. In 1936, the community had scattered residences and a school. By 1946, the oilfield was still in production. In the 1980s, Dyersdale had an abandoned railroad station, a church, and a trailer park.[1]