The name "El Toro" derives from the pre-Roman "Tor", "Turris" and "Torus" associated with tower, castle or knoll. It was an Iberian settlement from about 250 BCE.
On 28 November, 1260, Jaime I granted privileges to all the inhabitants of El Toro including tax exemptions. This was witnessed by his lieutenant, D. Ximén Perez de Arenós and several noblemen. The town continued to grow in power under the Señorío de Jérica, but when that line of succession ended, it was returned to the crown.
King Martin " The Humano" was granted absolute jurisdiction on 20 February, 1403, but then Francisco Zarzuela, treasurer of Aragon, acquired the town. It was eventually sold to the Duke of Calabria, Fernando de Aragon, in 1537. He, in turn, handed it over to the Hieronymite monks of the monastery of San Miguel who governed it until 1837 when it became a free town.