Markleville was founded by a man named John Markle in the 1850s. Markle's descendants still live in the area of Markleville. Some still carry the name of Markle.

The site of the Fall Creek Massacre, chronicled by Jessamyn West in her novel "Massacre at Fall Creek", is located about a mile from Markleville. An historical marker located just east of Markleville on State Road 38 tells the story of the massacre. In 1824, four men named Hudson, Sawyer, John T. Bridge, Sr. and John Bridge, Jr. were tried and sentenced to death for the murders of eight members of a small group of Seneca Indians, including women and children.  All were publicly hanged except for 18-year old John Bridge, Jr., who was pardoned on the gallows in person by Indiana Governor J. Brown Ray because of his age. This was the first time in U.S. history that white men were subjected to capital punishment for the murder of Native Americans.

Population in July 2008: 389