Actually, I don't know, but this is what I got from WIkipedia:
According to the town's semiofficial Web site, there are two leading theories about the origin of Hell's name.
The first holds that a pair of German travelers stepped out of a stagecoach one sunny afternoon in the 1830s, and one said to the other, "So schön und hell!" - roughly translated as, "So beautiful and bright!" Their comments were overheard by some locals and the name stuck.
The second holds that after Michigan gained statehood, George Reeves was asked what he thought the town he helped settle should be called, and replied, "I don't care, you can name it Hell for all I care." The name became official on October 13, 1841.
