According to local legend, the town was founded in 1099, however the first written mention is from 1335. The Gothic castle, Gothic houses and water fortification were built in the mid-14th century. The development ended during the Hussite Wars. The town was conquered by the Hussites but the castle resisted.[1]

Telč slowly recovered and another period of prosperity occurred during the rule of Zachariáš of Hradec. In the middle of the 16th century, he had the medieval castle rebuilt in the Renaissance style. He also had the Gothic houses rebuilt into Renaissance houses with arcades and decorated façades. During the Thirty Years' War, the town was shortly occupied by the Swedish army. The counter-reformation brought the Jesuits to the town, who built the Church of the Name of Jesus in 1667, and founded the Jesuit Latin Grammar School.[1]

During the 18th century, the town profited from wealthy townspeople who had statues, fountains, chapels and Marian column built. In 1773, the rights of the Jesuit Order were cancelled. From 1785, Telč was germanised. During the 19th century, the industry developed. The railway was built in 1898.[1]