The town was named in honour of James Ebenezer Bicheno, the British Colonial Secretary for Van Diemen's Land from 1843 to 1851, with the name in use in 1851.[2]

The first historical reference to the place that was to become Bicheno was made by James Kelly during his circumnavigation of Van Diemen's Land. He landed here (when it was known as Waubs Harbour) to dry his provisions.

Waub's Harbour was the location for a number of shore-based bay whaling stations in the late 1830s and early 1840s.[3]

Bicheno was proclaimed a township in 1866. Bicheno Post Office opened as a receiving house on 1 January 1855.[4]