Settled in 1853 by pioneer stockmen who had to fortify their homes against attacks and raids. Named Blanco (Spanish word meaning "white") for the Blanco River. The centerpiece of the town square is the Old Blanco County Courthouse, a fine example of Second Empire-style architecture. The town was the Blanco County seat from 1858 –91, then the county seat moved to centrally located Johnson City. Now, a popular tourist and resort area of the Hill Country, it is surrounded by numerous working lavender farms, bed-and-breakfasts and two locally owned motels. The town square is joined to a state park by the two-block City Park, which has a nature trail featuring a xeriscaped garden. A sunny climate attracts campers, anglers and hunters. Hill Country streams offer game fish. Hunters find white-tailed deer, wild turkey, quail and dove during their seasons.

Antique stores, art galleries, market days, restaurants and artisans occupy historic buildings around the old courthouse. The courthouse and 37 other buildings on or near the square are listed in the National Register of Historic Places.