The town was named Volcano because early settlers thought the site resembled a crater. Once a mining camp, it had the area's first public library, the first astronomical observation site and the first private law school library. The town's theater is home to a regionally known theater company.
Located just 3 miles northeast of town is Daffodil Hill, a well-known spring-time tourist destination.
This small community is located southeast of Sacramento on Highway 88.