Earlwood is thought to be named after Mr Earl and James and William Wood, early settlers in the area.
Earlwood is a well established residential area. Development of the area dates primarily from the 1910s, although the first land grant was in 1816. The area was characterised mainly by timber cutting until the 1870s. Most of the area was still forest and scrubland in 1910, with a small community at Undercliffe and a few dairies. Significant development occurred in the 1910s and 1920s. Major features of the area include Earlwood Public School, Undercliffe Primary School,Beaman Park, Earlwood Park, Waterworth Park, Wolli Creek Regional Park, Canterbury Velodrome and the retail area around Homer Street. Earlwood has experienced a small decrease in population between 1996 and 2001, the result of few dwellings being added and a decline in the average number of persons living in each dwelling.