Location of Camargo, Oklahoma
The area that became the present town of Camargo was part of the Cheyenne and Arapaho Reservation until it was opened for non-Indian settlement on April 19, 1892. A Camargo post office was established on September 16, 1892. Two stories exist about the meaning of the town name. One claims that it was named for a town in Illinois, while the other claims Camargo meant "little dog" in the Cheyenne language.
Farming and ranching sustained Camargo's early economy. The Wichita Falls and Northwestern Railway (later the Missouri, Kansas and Texas Railway, or Katy) built a line in 1912 between Leedey and Forgan (in Beaver County that passed through Camargo.Bentonite was mined in the area and shipped on the railroad until the railroad ceased operating in 1972-3.
According to the United States Census Bureau, the town has a total area of 0.2 square miles (0.52 km2), all of it land.