Okolona is located in south Louisville and is centered around the intersection of Preston Highway and the Outer Loop. Okolona also offers easy access to I-65 and downtown Louisville.
It was first settled by farmers from Pennsylvania and Virginia in the late 18th century. It was called Lone Oak in the late 19th century. However, a town near Paducah, Kentucky already claimed that name for its post office, so the town rearranged the words into Okolona. Farming, as well as logging and charcoal production were important industries around this time.
Residential development started to grow when General Electric Appliance Park was opened nearby in 1953. In 2003, when county and city government merged, Okolona became a neighborhood within the Louisville Metro Area.
Okolona is also home to one of the city's largest shopping areas on the South End, with many stores centered around Jefferson Mall.