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The area around Beaconsfield was first explored by Europeans in 1804 when William Paterson led an expedition to Port Dalrymple and established a settlement at York Town. Settlement of Beaconsfield itself, then known as Brandy Creek did not occur until the 1850s. Limestone mining led to the discovery of gold in 1869. Gold mining began in 1877 and the area's population boomed. Brandy Creek Post Office opened on 1 December 1877 and was renamed Beaconsfield in 1879.
The town was named Beaconsfield in 1879 in honour of Benjamin Disraeli, 1st Earl of Beaconsfield, who was the Prime Minister of the United Kingdom at the time. In 1881, the Beaconsfield newspaper was called the Beaconsfield Tickler. In 1953, Beaconsfield was the first town in Australia to fluoridate the water supply.