In 1837, B.H. Heimann, of Hanover, Germany, became the first to settle in Lookingglass Township. Heimann purchased land from the United States government and developed a farm. Edward Teke, Herman Kalmer, Herman Rensing, and John Santel soon came to the Damiansville area and developed settlements of their own. By 1843, many German immigrants, mainly from Westphalia and Hanover, Germany, had arrived after hearing accounts of the area's fertile land from the initial German settlers.

A log cabin schoolhouse was built in 1844 to educate the area children. Saint Damian's Catholic Church was built in 1861 on the land purchased by the Right Reverend Bishop Junker. The development of the church brought a new name to the village. It had been previously named after the small Holland town, Dempter, but was changed to Damiansville to honor the church's founder, Bishop Damion Junker. A one-room schoolhouse was also built in 1861 to replace the log cabin schoolhouse.

Homes and businesses were soon erected around the church, forming the present day layout of Damiansville village. Both Henry Haidders and B. Stephens developed the community's first general stores during the year 1861. By 1881 the village enjoyed three stores, three saloons, two blacksmith shops, and one wagon-maker. Residents were able to enjoy goods from St. Louis as the general stores sent out peddle wagons stocked with dry goods to all the area farms. The wagons then traded the dry goods for eggs, butter, and produce, which would then be taken to St. Louis and traded for dry goods. The wagons would return to Damiansville and begin the trading process again.

Damiansville has continued to expand throughout the years as a shoemaker, saw mill, automobile garage, trucking service, and an additional general store developed within the township. Numerous businesses such as Toennies Sales & Services, Kalmer Pallet & Lumber, and Home Nursery continue to make Damiansville their home. Agriculture remains the village's central occupation, however, with wheat, corn, and soybeans as the principal crops.