The county was named in 1843 for Judge William Owsley, who was prominent in the Old Court–New Court Controversy of 1823. Born in Virginia in 1782, he came with his parents to Lincoln County in 1783 and studied law with Judge John Boyle. He served two terms in the state legislature, was appointed to the Court of Appeals and served 15 years, then served in the State Senate from 1832 to 1834, as Secretary of State from 1834 to 1836, and as Governor of Kentucky from 1844 to 1848. He died in 1862.