Olney is located in eastern Illinois in Richland County (of which it is the county seat). It lies along U.S. Highway 50 between Salem and Lawrenceville northeast of Mt. Vernon. The population estimate for July 1, 1998 was 8,824, a decrease of 49 since 1990.
Olney is home to Olney Central College, a community college serving the area's extended educational needs.
Interestingly, the town hosts hundreds of albino squirrels that actually have the right-of-way on town streets.