The community was settled primarily by German immigrants; it was called Virginia for a number of years, a name given to its Illinois Central Railroad station. Its post office was established as Steen in 1888 when it was platted. It was later incorporated as a village on February 5, 1942, was named in honor of John P. Steen and his brother, Ole P. Steen, immigrants from Norway, who were homesteaders and gave land for the townsite.