This community was settled in 1878 by W.H. (Pete) Snyder, who opened a trading post here. The town site was laid out in 1882, and the county was organized two years later. It is the present seat of Scurry County. In 1950, the city grew from 4,000 to more than 12,000 after the discovery of the Canyon Reef Oil Field. Now, it is the center of the largest unitized (operated by a single operator) oil field in the world. The town is home to Western Texas College.

A prairie-dog town can be seen at Towle Memorial Park, South side of city on Texas 350.

Snyder lies on U.S. 84, a segment of the Ports-to-Plains Highway connecting the state's heartland to coastal ports.