The village was first mentioned in documents around 1184 under the name "Diethenroth". The latest publications mention the year 1251 as the first documented mention.
The place name Dieterode means: "The village built on the clearing of Dietridi".

The small "St. Georg" church, situated at the north-western end of the village, has a ridge turret with the usual dome on the west gable. This church was rebuilt in 1785 after the old church dating from 1520 had been demolished. On November 10, 1946, the interior of the church was destroyed by fire, so that everything had to be rebuilt.

When the Heiligenstadt - Schwebda railroad line was established via Dieterode in 1914, the station was also built. After railroad operations ceased in 1947 and the tracks were dismantled, the route became a popular hiking trail.

The "Dieteröder Klippen", visible from afar, became a popular destination for visitors from near and far after the opening of the border.

The church forecourt in Dieterode was redesigned in 1993. In the same year, the community, which now has 74 inhabitants, celebrated its first fair after a 14-year break.

1995-1996 Redesign of the fairground and village pond.

Well-kept houses, especially those built in the half-timbered style, bear witness to the hard work of the inhabitants of Dieterode.