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Terry County was demarked from Bexar County in 1876 and named for Col. Benjamin Franklin Terry, who commanded the Eighth Texas Cavalry (Terry's Texas Rangers) in the Civil War. It was attached to Young County until 1881, when Throckmorton County took over its judicial affairs. In 1883 administration was vested in Howard County, and in 1889 it was transferred to Martin County. The county began to be settled by whites in the 1890s, when the state offered ten-year leases on school lands for grazing cattle. Terry County was organized in 1904, with Brownfield as its seat of government.
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