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The town was incorporated in 1831. It was named after Charles Carroll of Carrollton, the longest-living signer of the Declaration of Independence and the only Roman Catholic. Carrollton has had a post office since 1831.
The county jail was also located in the courthouse, as was the norm. In a time when white supremacy was at stake, the courthouse square was often used as a place for public lynchings. This was part of a program that involved intimidation and racial terror, which saw these murders more frequent over the years. John Gibson was one of the many African Americans who were lynched at Carrollton on August 28, 1907. According to Lynching in America published by the Equal Justice Initiative, Pickens County had the fifth-highest number of lynchings in Alabama.