The small village was first mentioned in 1071 as "Stahla". Further mentions: 1350 Schala, 1462 Schale, 1512 Schalla, 1743 Schala. The name comes from the Slavic and means ravine, cave or tributary of a river. In the 15th century, members of the noble von Schaala dynasty owned a manor in the farming settlement as fiefs of Schwarzburg. This passed into the possession of the Vitzthum von Eckstedt family, who kept it until the middle of the 18th century.

The local porcelain inventor Georg Heinrich Macheleid founded an earthenware and faience factory on the site in 1790, which was later owned by the court painter Johann Franz Kotta and operated as a porcelain factory under the ownership of Ferdinand Moersberger from 1850 until shortly after the First World War. The abundant water supply of the Schaalbach stream was used by several mills. In addition to agriculture, viticulture played an important role as a source of income until the end of the 19th century. In addition, several small businesses were and still are located in Schaala. From the turn of the 20th century, non-agricultural, urban buildings increasingly shaped the townscape, in the center of which stands a well-preserved fortified church. From 1856 onwards, a farm with catering facilities was developed from a Vogelherd located near the village, which was named "Schwarzenshof" after its first owner. The farm buildings were destroyed by fire in 1906. The Methodist Church Berlin acquired the residential and guest house in 1923 to house a retirement home, which was opened in 1925. Subsequently, a youth hostel and a vacation home were added to the property. The Protestant Methodist Church currently runs a meeting and educational center there.

Schaala has been part of Rudolstadt since its incorporation on July 1, 1950.