According to the United States Census Bureau, the town has a total area of 1.5 square miles (4.0 km²), all of it land.
There were 591 households out of which 31.6% had children under the age of 18 living with them, 55.2% were married couples living together, 10.7% had a female householder with no husband present, and 29.9% were non-families. 26.7% of all households were made up of individuals and 13.9% had someone living alone who was 65 years of age or older. The average household size was 2.53 and the average family size was 3.05.
In the town the population was spread out with 24.5% under the age of 18, 9.2% from 18 to 24, 28.2% from 25 to 44, 20.7% from 45 to 64, and 17.4% who were 65 years of age or older. The median age was 37 years. For every 100 females there were 90.8 males. For every 100 females age 18 and over, there were 91.6 males.
The median income for a household in the town was $36,295, and the median income for a family was $42,969. Males had a median income of $29,018 versus $22,545 for females. The per capita income for the town was $16,163. About 2.7% of families and 4.5% of the population were below the poverty line, including 4.6% of those under age 18 and 2.6% of those age 65 or over.
The Indiana Department of Transportation, as part of the Major Moves transportation program, is currently building a four-lane, limited access highway by-pass that will carry U.S. Highway 231 around the west side of Dale. The town will have access points at Indiana 62 on the town's south side, Indiana 68 on the west side, and Spencer County Road 2050 North (a new roadway) on the north side.
County Road 2050 North will provide access to two hotels, a restaurant, gas station and residences that are presently accessed from the present interchange of U.S. 231 with Interstate 64. The present diamond interchange will be eliminated in favor of a cloverleaf interchange located slightly to the west, necessitating the access road.
The community of Dale is expected to benefit from increased economic development and less traffic through the center of town, where backups at the only traffic signal have become more common in recent years. This causes problems especially during the summer months, when the existing roads are heavily traveled by visitors to nearby Holiday World and Splashin' Safari, Lincoln State Park and the Lincoln Boyhood National Memorial.