Butte County was one of California's first counties, created in 1850 at time of statehood. Part of the county's territory was given to Plumas County in 1854 and to Tehama County in 1856.

Its name is derived from the Marysville or Sutter Buttes, which lay within the boundaries when it was created. The word butte is derived from the Teutonic word meaning "a blunt extension or elevation." In the French language, it signifies "a small hill or mound of earth detached from any mountain range." Butte is the only California County whose name is a French word. There is also Butte Creek (California) which flows through Butte County, and has buttes.