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In the early 1830's, an English settler named George Vardin and his family arrived in what is now Libertyville. The settlement which soon developed was known as "Vardin's Grove." In 1836, during the Independence Day celebration, area residents voted to call their town "Independence Grove." Mail service from Chicago to Milwaukee was established in 1836, prompting area residents to petition for a post office. The request was granted and the first post office was established in the former Vardin cabin on April 16, 1837. The Village was also registered under the name "Libertyville" on that day due to the fact an Independence Grove post office already existed in Illinois. The name of the Village was changed with the creation of Lake County in 1839, Libertyville became the county seat. The new name, "Burlington," lasted until the county seat was moved to Little Fort (now Waukegan) in 1841. At that time, the Village reclaimed the name "Libertyville." In 1881, the Milwaukee and St. Paul Railroad (now the Metra Milwaukee District North commuter line) was extended to Libertyville. Rapid expansion of the Village resulted, with schools, churches, stores, mills, lumber yards and homes being built. The Village was incorporated in 1882, with John Locke as its first president.

The Ansel B. Cook House and David Adler Cultural Center are two important historical sites located within the Village. The Cook house was deeded to the Village in 1920 for use as a library. Following the completion of the Cook Memorial Library in 1968, the Cook home became the headquarters of the Libertyville-Mundelein Historical Society. The Cook home, maintained in a Victorian setting, is now a museum of local history open to the public at designated times throughout the year. The estate of the distinguished Chicago architect David Adler was left to the Village following his death in 1949. The David Adler Cultural Center was founded in the Adler home in 1980, and because of its unique site and multi-disciplinary programming, has developed into an historical and cultural presence in Lake County and the surrounding region.