The town's name is taken from the Book of Isaiah, 62:4. In some English translations the word is given as "married" or "inhabited".
Beulah was established on land that was once part of Brimstation. Closer settlement began in the 1880s and the town site was proclaimed in 1891. A Post Office opened on May 6, 1891  and the railway from Warracknabeal opened on 5 January 1893. The line to Hopetoun opened on 6 March 1894. The town claims to be the closest to the rabbit-proof fence, established to prevent the incursion of rabbit plagues.