The town of Crosby has been known by several names throughout its history. It was first called Dayton in 1800, in honor of its first merchant, David Day. In 1917, the Foster Creek Lumber Company built a large mill here, and the town was renamed Stephenson, in honor of the owner of the lumber company, Fred Stephenson. When L.O. Crosby bought the lumber mill in 1934 the town changed its name to Crosby.