Savoy began its existence within the Massachusetts Colony as part of "Northern Berkshire Township #6", which included the present-day towns of Adams, North Adams, Cheshire and Lanesborough. The land was auctioned off several times before it was finally purchased by Colonel William Bullock of Rehoboth.

Savoy, or "New Seconk" as it was originally called by its inhabitants, was first settled in 1777 by a group led by Colonel Lemuel Hathaway. The town was officially incorporated in 1797, and was supposedly named for the land's resemblance to the Duchy of Savoy in France. The town started off with a grazing agrarian industry, before several lumber mills took off in town. The town was very diverse religiously, with several faiths practicing by the mid-19th century. Today the town is mostly a quiet rural community, known for its scenery and natural beauty.

According to the United States Census Bureau, the town has a total area of 36.0 square miles (93.3 km²), of which 35.8 square miles (92.8 km²) is land and 0.19 square miles (0.5 km²), or 0.48%, is water. The town is the 45th largest town by area in the state, and ninth largest in the county. Savoy is located among the Berkshire Hills, with much of the town being dominated by Savoy Mountain State Forest, as well as parts of three other state forests (Mohawk Trail State Forest, Windsor State Forest and Kenneth Dubuque Memorial State Forest), and a wildlife management area in the southwest corner of town. The Cold River, a branch of the Deerfield River, forms part of the town's northern border, and feeds several brooks. Several tributaries of the Westfield River also flow through the southern portion of town. The highest point in town is the summit of Borden Mountain, at 2,507 feet (764 m) above sea level.

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