When Clyattville was first settled, there were only a few families to establish residence. Some of the families were the following: the Brays, the Hunters, the Lanes, the Arnolds, the Covingtons, the Quillians, and of course, the Clyatts. It was reported that Clyattville was named after the Clyatt family since they were the first settlers.

The community has not always been at its present site. Once it was located two miles northwest on the Old Clyattville Rd. It was said that the reason for moving the original location was the fact that a railroad was constructed through the community which caused to much noise. The first train that ran through Clyattville was known as the Coast Line.