Settlers began moving to this area when the Texas and Pacific Railroad completed its line in December 1880. Many settled near the commissary of railroad crew foreman Robert Clyde, for whom the town is named. A post office was established in 1881. The schoolhouse was used for church meetings and local court proceedings. In 1920, a sign on the water tower proclaimed Clyde “The California of Texas” because of its fertile soil and shallow water table. Destructive tornadoes struck the community on three separate occasions, in 1895, 1938, and 1950.