Tealby was previously known as Tavelesbi, Tauelesbi, Tauelebi and Teuelesby and many other variations. At one time it was thought that "Tealby" was derived from the Anglo-Saxon word "taefl", meaning chessboard or table and from the Scandinavian word "by", meaning village. All Saints Church, which dominates the village, dates from the 12th century, although a church may have existed on the site before the Norman Conquest. The Church is built of orange-brown Tealby ironstone, the oldest parts being the west doorway and the lower part of the tower. There are many interesting features, including the memorials to the Tennyson family. George and Mary Tennyson were the grandparents of Alfred Lord Tennyson, the Poet Laureate. In addition to the Church there are three former chapels. John Wesley visited and preached in the village five times.

Tealby is now a quiet rural village with a strong community spirit and many attractive attributes. It is in the Lincolnshire Wolds Area of Outstanding Natural Beauty and has a Conservation Area. The Viking Way, a long distance footpath from the Humber to Oakham in Rutland, passes through the village.