Sandisfield was first settled in 1750 as Housatonic Township Number 4, and was officially incorporated in 1762. It was most likely named to honor Lord Sandys, a British colonial official—pronounced "Sands". The town was mostly an agricultural setting in the earliest times, with rye fields and orchards filling the land. Sawmills grew up along the rivers, but most industry failed in the late nineteenth century, when a planned railway along the Farmington River fell through. Significant numbers of Ukrainian farmers moved in during the late nineteenth century, many of them running chicken farms.

The Record was published from 1981 to 1985 and The Newsletter for a decade during the 1990s. The volunteer-run Sandisfield Times has been published 11 times a year since 2009. Today the town is mostly rural, with some of the least densely populated parts of the state.

According to the United States Census Bureau, the town has a total area of 53.0 square miles (137.2 km²), of which 51.8 square miles (134.2 km²) is land and 1.2 square miles (3.0 km²), or 2.22%, is water. The town is the largest by land area in Berkshire County, and eighth largest in the state. Sandisfield lies at the southeast corner of Berkshire County along the Connecticut border, with Hampden County to the east and Litchfield County, Connecticut, to the south. Sandisfield is bordered by Otis to the north and northeast, Tolland to the east, Colebrook and Norfolk, Connecticut, to the south, New Marlborough to the west, and Monterey to the northwest. Sandisfield lies 28 miles (45 km) south-southeast of Pittsfield, 32 miles (51 km) west of Springfield, and 118 miles (190 km) west-southwest of Boston.

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