Victoria is an inland settlement and was developed later than most coastal communities in Newfoundland. In the mid-19th century people began to settle along the Carbonear-Heart's Content road, attracted in part by arable land for farming and lumbering. Because Victoria was close to the coast, residents were also able to work seasonally in the fishery.
During WWII a Prisoner of War camp was built near Victoria, but it was never used as the American military felt that the camp was too close to major air and naval bases in Newfoundland. The camp was sold to the Government of Canada for its scrap value in 1943.
After WWII the population of Victoria grew through the consolidation of nearby communities and the growth of employment opportunities in Carbonear. Today, Victoria also serves as a local service and educational centre.