The municipality was created through the local government reform of 1952, when six former entities were united. The name was taken from the old Ydre Hundred. Its area remained unchanged by the reform of 1971.
At least two churches have a medieval foundation: The Asby Church in Asby, and Torpa Church on the countryside. There is also an attractive church from the 18th century, Norra Vi Church, located just by lake Sommen.