The village name may be derived from the Anglian personal name of Ulf combined with tun meaning habitation. There are the remains of a Roman villa nearby, consistent with the village's location near the junction of two old Roman roads. Articles from the site are located within the York Museum. The village is mentioned in the Domesday Book as Uluestan and at the time of the Norman invasion, the lands were owned by Gospatric, son Arnketil. Following the Norman invasion of Britain, the estates of Yearsley, Coxwold and Oulston fell into the hands of a Norman family whose previous seat of power had been in Montbray, Normandy. By 1158, however, these same lands had been given to another Norman lord whose family base had been Colleville on the Normandy coast. In return for receiving these lands, Thomas de Colville had to swear allegiance to Roger de Mowbray. Thomas de Colville’s estate included the manors of Yearsley, Coxwold and Oulston as well as other properties and land in York, Thirsk, Everley, Nunwick, Ripon, Kilburn and Upsland. The Colville shield is proudly displayed at one of the roof intersections in the twelfth centuryNorman church at Coxwold. A fourth Thomas Colville generously allowed John, the Prior of Newburgh, to live “by suit of court” in his manor house at Oulston. In return for Thomas’s generosity, John used his influence, in 1256, to arrange a special privilege for Thomas: Thomas would no longer be required, on behalf of the king, to carry out any legal or other administrative duties against his will. The lands were eventually passed to the Fauconberg family and thence to the Wombwell family, who resided at nearby Newburgh Priory Estate. There used to be a Wesleyan chapel in the village, which is now the village hall. It is a Grade II listed building. There are four sites in the area that are scheduled ancient monuments. They are:
According to the 1881 UK census, the population was 177. In the 2001 UK census the population was 102 of which 85 were over sixteen years old. Of those, 51 were in employment. Oulston lends its name to the reservoir on the River Foss to the east of the village. The nearest settlements to Oulston are Crayke to the south; Husthwaite to the west; Coxwold to the north and Yearsley to the east.
