Reynolds was established in 1880 when the Chicago, Burlington and Quincy Railroad reached the site; per available sources it was named "for the father of a railroad conductor." Like many small Jefferson County villages, its history is closely bound to the rail line that created it.

Reynolds is one of the county's smallest villages, with a 2020 Census population of just 59, down from 88 in 2000. Its ZIP code is 68429. Despite its size, it has produced two notable natives: Basketball Hall of Fame coach Eddie Hickey and Roman Catholic Bishop of Salt Lake City Duane Garrison Hunt (served 1937–1960).