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The earliest evidence of human settlement in Florence dates back at least 500 BCE when the Florence Indian Mound was built as an earthwork during the Woodland periods. After this, many other cultures emerged. The Chickasaw Nation occupied the area that is now Florence during the historical period. In the late 1700s, they first met white traders and settlers. They were forced to give their land to the Federal government in a series of treaties in the early 1800s as part of the Indian Removal policy, which was designed to end tribal land claims east of the Mississippi River. The Chickasaw were expelled to Indian Territory west of the river.
John McKinley (a future U.S. Supreme Court Justice) and General John Coffee founded the Cypress Land Company in order to establish a town on a hill overlooking the Tennessee River. The land was purchased by the company because it was located along Jackson's Military Road, at the end of the dangerous Muscle Shoals rapids, and would allow it to grow as a major commercial hub. Coffee, an Italian engineer, and a young man gave Ferdinand Sannoner the task of planning and surveying the new town in 1819. Sannoner was given the opportunity to name the new settlement after Florence, the capital city of the Tuscany region, as a reward for his efforts.
In 1821, the first river steamboat visited Florence. General Andrew Jackson, President James Monroe, and other settlers bought up land plots as they were being sold by the Cypress Land Co. Florence became a major commercial center on the Tennessee River but not to the extent its founders hoped. Florence did not grow fast enough to be included in the State Legislature's 1826 incorporation.
In 1847, the Florence Female Academy was established by local residents as a way to show progress and ambition. It is now a school for female students. The school was transformed into the Florence Synodical Female College in the 1850s. It is affiliated with the Presbyterian Church. It was closed in 1893. The site is commemorated by a historical marker.