The village was named for the large amount of beaver dams near the original town site. A post office called Beaver Dam was established in 1850, the name was changed to Beaverdam in 1895. The village was incorporated in 1878. Beaverdam lies at the junction of the old Lincoln Highway and the Dixie Highway. These early highways were begun in 1914.
Currently Beaverdam's economy is dominated by three large truck stops on what is now the junction of Interstate 75 and U.S. Route 30. Beaverdam was the eastern terminus of the four lane section of US 30. This meant that vehicular traffic going east on the four lane portion of US 30 that extended from Fort Wayne, Indiana had to exit the four-lane road and shift to a two-lane road. This required exit enhanced the village's function as an area for refueling of vehicles. US 30 is now a continuous four-lane highway in this part of Ohio that bypasses Beaverdam, but the significance of the junction as a major fuel stop has not been diminished. In the summer of 2006 the exit ramps and overpass on I-75 were widened to accommodate heavy truck and car traffic to the truck stops. As of the census of 2010, there were 382 people, 144 households, and 107 families residing in the village.