The name possibly derives from 'Wibba's Ley', a ley being a woodland glade and Wibba being a local Saxon landowner. In the Domesday Book the village name was transcribed as Wibelai. It is still pronounced as "Web-ley" (the spelling being similar to nearby Leominster which also does not pronounce the letter 'o' in its name).
In the Saxon period it is known that brewing and glove-making were carried out in the village.
The village has an historic church, the Church of St Peter and St Paul, with a Norman south doorway, a 13th-century chancel and 14th-century tower and a spire that is the second-tallest in the county; castle ruins; a high school and a primary school with a pioneering system of heating.
It was once incorporated as a borough, sending two Members of Parliament to the House of Commons until the Reform Act 1832, (see Weobley (UK Parliament constituency) and once had a borough corporation.
In 2001 the artist Walenty Pytel completed a sculpture of a magpie for the village (a magpie is the village's emblem). The sculpture was commissioned after the village won the Calor Gas/Daily Telegraph Great Britain Village of the Year in 1999.