The town of Terril was born in the summer of 1895. A section of land owned by E.E. Taylor was selected and placed on file at the county seat. Trilby was chosen as the name for the new town, however, it was discovered that another town with that name already existed in Iowa, so the name was changed to Terril. During that first summer, a store, bank and hotel were constructed. J.R. Phelps started the hotel; C.H. Avery the dry goods store; the Terril Bank was established by Taylor & Ewert and the firm of Sharkey & McNary opened a hardware store. The town of Terril was incorporated in 1899 with Howard Everett being elected as the first mayor and D.M. Schaffer the first postmaster. The first school session in Terril was started soon after the opening of the town and was taught by E.E. Heldridge. Terril was the first district in Dickinson County adopting the features of the consolidated system, which had a centralized system of education as early as 1901.
Terril, Iowa's estimated population is approximately 345 and is the 546th largest city in Iowa based on official 2017 estimates from the US Census Bureau.