The land that eventually became Beachwood was originally part of the Connecticut Western Reserve.
Before becoming an independent municipality, Beachwood was part of Warrensville Township. In 1915, it seceded from Warrensville after the Township voted to close a nearby area school. A petition was organized, and on June 26, 1915, Beachwood was incorporated into an independent village. In 1960, Beachwood had reached the number of residents to attain city status under the Ohio Revised Code.
Beachwood was named for the numerous Beech trees that grew throughout the village. The origin of the spelling of the city is disputed. Upon incorporation, the city's name was originally spelled, "Beechwood". One popular theory is that an early village hall clerk misspelled the name on some official documents, giving rise to the current spelling.