The village's name is taken to mean Wood of the Jackdaw.

To celebrate becoming the Archbishop of York in 1466, George Neville held a feast at the castle that lasted many days, the feast became known as the 'Great Feast of Cawood'.

In 1530, Cardinal Wolsey stayed at Cawood as Arch Bishop of York but was never enthroned as Arch Bishop at York Minster as he was arrested for treason and died on his way to London.

During the English Civil War the castle and village were a Royalist stronghold but the castle was captured by the Parliamentarians. Under the command of the Earl of Newcastle the castle was taken back for the Royalists in 1644 for a short period before the Parliamentarians under Lord Fairfax recaptures it and used it as a prisoner of war camp.

Once the war ended the castle was destroyed.