Lake Vermilion derived its name from the translation of "Onamuni", the Ojibwe name meaning "Lake of the Sunset Glow"- which the French translated to "Vermilion", a Latin word for a color ranging from yellow to red.

There is evidence of a long history of human habitation in the area. Archaeological evidence places a succession of American Indian cultures at Lake Vermilion, starting before 7000 B.C. and continuing to the present day. Archaeological and cemetery sites can be found throughout the area, and early prospectors noted evidence of jasper and quartz mining that predated European exploration.

In the mid 1600's, French explorers and fur traders became the first Europeans to discover the shores of Vermilion. They immediately began a trade friendship with the Sioux Indians who already inhabited the lake, and several decades later with the Chippewa who still reside in the area today.

More here... http://www.lakevermilionresorts.com/about/history/