The town was founded in 1882. It is named after Hansford R. Hall, one of the founders. Among the early business ventures were sawmills and cotton-gins founded in the 1880s.
Halls is home to the Veterans' Museum on the grounds of the Dyersburg Army Air Base, which documents the history of the World War II Army Air Corps. It was the main base for the B-17 Flying Fortress Bombers in the mid-1940s.