Woodburn was platted in 1871 by Jesse Holland Settlemeier. It reportedly got it's name from a fire that got out of hand when the railroad attempted to burn off a right away next to their tracks. A nearby wooded area was substantially destroyed. The choice of names commemorates this event.

The French Prairie Historical Society maintains the Settlemier House in Woodburn owned by Jesse's son, Frank W.Settlemier.

1872 post office was established Dec 28, 1871 with Adolphus Mathiot first postmaster.