The Liberty area was settled beginning in 1859 as an outgrowth of Eden. In 1892, a separate townsite was laid out and a separate ward of The Church of Jesus Christ of Latter-day Saints (LDS Church) organized. The name came from John Freeman's remarks that both cattle and people took "full liberty" in the area. Settlement happened gradually, homes built one at a time rather than in tract housing. Traditionally a farming and ranching community, Liberty has developed in recent years into a recreational community and commuter town for the Ogden area.
As of the census of 2010, there were 1,257 people residing in the CDP. There were 437 housing units. The racial makeup of the CDP was 96.2% White, 0.7% American Indian and Alaska Native, 1.0% Asian, 0.1% Native Hawaiian and other Pacific Islander, 0.9% from some other race, and 1.2% from two or more races. Hispanic or Latino of any race were 2.5% of the population.