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Prior to Grayson becoming an actual city it was home to the Cherokee Indians. After the European settlers arrived, the area around what would become Grayson was opened for settlement and eventually, after a series of changes, would become Bay Creek District (later changed to Grayson) in 1877. Grayson became an official incorporated city on December 17, 1902.

Grayson is home to three community parks where plenty of lazy days and community events occur. The main park, Grayson Park, offers a doggie area, small and large pavilions, a large play area, and parking areas for the local Arts and History Center. The Bay Creek Park offers the area's first special-needs ball field and the Unity Place playground. There is also a second playground that has access to seven baseball fields, one football field, and a lighted football track that winds around the park. Finally, Tribble Mill Park offers two lakes for fishing, swimming, and other water sports, various walking trails, pavilions, and open space for festivals and other events.