The village's name was recorded as "Stanstede" at the time of the Domesday Survey in the late eleventh century.
In the twelfth century the manor passed to the abbot of Waltham Holy Cross.
By the fourteenth century the suffix "Abbatis", "Abbotts" or "Abbot" formed part of the parish's name. The abbey continued possession of the manor until its dissolution in 1531.

In common with the rest of Hertfordshire, the local area was heavily forested during the Middle Ages.
The clearance of woodland supported the industry of charcoal burning which was both for local use and also exported.
This industry lasted through until the end of the 18th century. The most enduring local industry however is that of malt production. The fertile soil in Hertfordshire and neighbouring counties to the north and northeast produced abundant quantities of high quality barley that could be turned into the finest malt. This Hertfordshire grain could be sold at a premium at market. Packhorses were used for moving the grain from the farmland to the malting towns of Hertford, Ware and Stanstead Abbotts sited along the River Lea. Their strategic location between the fertile growing areas and London combined with the benefit of a navigable waterway to London led to a flourishing local malting industry.
The River Lea provided a far more efficient means of transporting large quantities of malt to the major breweries of London than the alternative of packhorses The malting industry declined over a long period until today just the one malting of French & Jupps remains in Stanstead Abbotts. Although many of the maltings have been demolished some of the malting buildings still exist and are now divided into smaller units and used to provide accommodation for small businesses.
The High Street has a significant number of historical buildings that add character to the area.
Until the mid 1980's the narrow High Street was part of the old A414.
This meant that a lot of heavy transport passed through the village but the opening of the Stanstead Abbotts by-pass improved the situation considerably.

At the end of the High Street stands the Clock House.
Although it is now a listed residential property it was once the Baesh Grammar school, founded in 1635.
Inns of note include the Red Lion, which dates back to 1538, and which started life as a monastery before becoming an inn. There are three churches, the main parish church of Saint Andrews, Saint James, and Saint Margarets. Saint James has an authentic 18th century interior. The church of Saint Andrews was designed by Alfred Waterhouse, who was also involved with the design of Saint Pancras station in London. Also by Waterhouse is the large almost manor type house of Easneye, which is now home to All Nations Christian College, which was originally owned by Thomas Buxton who donated the house to the college.
Saint Margaret's started life as the Church of the Blessed Virgin Mary, which is recorded c.1300. In 1316 a college of 4 priests was set up to pray for the Lord of the Manor and his wife Margaret, which led to the change of name. The organ in St Margaret's is believed to be the only remaining William Allen barrel organ in working order.

The village was recorded in history when Queen Elizabeth I passed through on her way to London, from her father's hunting lodge in the adjoining village of Hunsdon. Nearby is an area known as Rye House which is named after The Rye House that stood there in the time of Charles II.
The Rye House plot of 1682 is well charted in history concerning the failure of the assassination plot to eliminate the King on his return from Newmarket.
Only the large gate house remains now, which is open to the public on certain days.