Ballyhahill is said to derive its name from Baile Ui Sheithil meaning Schull's or Scahill's townland. In Logainmneacha na hÉireann: Contae Luimnigh the village is referred to as Baile Dhá Thuile or "the town of two floods". Ballyhahill is described as a Chapel village with its church having been built in the 1820's.

In Lewis' Topographical Dictionary of Ireland 1837, the land is described in the northern part as fertile but the southern part as hilly. About one third of the land in the area is under cultivation and the rest is rough mountain pasture.

In 1837, Ballyhahill formed part of the ecclesiastical parish of Shanagolden but in 1857 it was detached from Shanagolden and added to Loghill.

The White River (Abhabhán), flowing through Ballyhahill, is renowned in song and is a good fishing river also.

There is one Holy well in the area called Tobercloonagh. It is situated in the centre of a field in the townland of Tinnakilla. There is no devotion to the well now.