In the 1870s, lumber baron Henry Stephens established a large lumber operation at St. Helen, considered at the time to be among the largest and best equipped in the state. The mills were estimated to have produced more than 1 billion board feet (2,000,000 m³) of lumber within a period of fourteen years. Most of the logs were moved by river, but lumber was also moved by rail.

The St. Helen Development Company was organized to sell land and promote development of the area, and over seven years sold 80,000 acres (320 km2) of land and helped to build more than 30 miles (48 km) of roads and over 80 miles (130 km) of fencing.

St. Helen was named after the lake. It is believed that French voyageurs named it after Saint Helena of Constantinople, mother of Emperor Constantine.

The Detroit, Bay City and Alpena Railroad (later the Michigan Central, then the Detroit and Mackinac Railway and presently the Lake State Railway Company) built a line through the area with a station at St. Helen. The now decommissioned M-76 passed through St. Helen and portions are still signed as "Old 76". St. Helen has survived based on tourism and proximity to the lake.