Albion was settled in 1790 as Freetown Plantation by Congregational minister Daniel Lovejoy, father of Presbyterian minister Elijah Parish Lovejoy. It was incorporated as the Town of Fairfax on March 9, 1804. It annexed land from Winslow in 1810, and gave up segments of land in 1813, 1816, and 1818 that would eventually become China. The town's name was changed to Ligonia on March 10, 1821, and then to Albion on February 25, 1824.

According to the United States Census Bureau, the town has a total area of 39.46 square miles (102.20 km²), of which, 38.83 square miles (100.57 km²) of it is land and 0.63 square miles (1.63 km²) is water, chiefly Lovejoy Pond (379 acres).

Albion is served by US Route 202, Maine State Routes 9 and 137. It is bordered on the northwest by Benton, on the north by Unity Township, on the northeast by Unity, on the east by Freedom, on the south by China and Palermo and on the west by Winslow.

As of the census of 2010, there were 2,041 people, 819 households, and 568 families residing in the town. The population density was 52.6 inhabitants per square mile (20.3/km²). There were 923 housing units at an average density of 23.8 per square mile (9.2/km²). The racial makeup of the town was 97.8% White, 0.4% African American, 0.3% Native American, 0.4% Asian, 0.1% Pacific Islander, 0.2% from other races, and 0.7% from two or more races. Hispanic or Latino of any race were 0.3% of the population.

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