The parishes of Oldbury-on-the-Hill and Didmarton were together surrounded on all sides by the parish of Hawkesbury and the county boundary with Wiltshire, which is taken to suggest that they were anciently part of Hawkesbury.
The Domesday Book of 1086 calls the village Aldeberie. Before 1066, it was held by Eadric, Sheriff of Wiltshire, and in 1086 by Ernulf de Hesdin. A document of 972 gives the name as Ealdanbyri, meaning 'old fortification'. A possible derivation from the name of St Arilda has also been suggested.
In 1342, the tithe of hay and other lesser tithes in Didmarton and Oldbury-on-the-Hill belonging to Badminton church were assessed at £4 13s. 4d.
Together with neighbouring Didmarton, the parish was subject to enclosure in 1829.
Benjamin Clarke's British Gazetteer (1852) says:
According to The National Gazetteer of Great Britain and Ireland (1868):
Monumental inscriptions from St Arilda's churchyard include the names Alcock, Baker, Bayliss, Chappell, Clark, Cockram, Dale, Fry, Gunter, Hatherell, Hatherle, Holborow, Holobrow, Long, Pirtt, Rice, Thompson, Toghill, Verrinder, Walker, Watts, Webb, White, and Yorke.
The church shares its ancient dedication to St Arilda with the church of Oldbury-on-Severn, some twenty miles (32 km) away. St Arilda was a Gloucestershire virgin and martyr who lived at an uncertain time before the Norman conquest of England at Kington, near Thornbury, which is now in the parish of Oldbury-on-Severn. Her feast day is 20 July.
St Arilda's at Oldbury-on-the-Hill has been declared redundant, so is no longer used for regular worship.