Soon after the establishment of this community along the proposed rail line for the Chicago, Rock Island and Gulf railway in 1902, residents called for the creation of a school to serve their children. Both the community and the school were known as Story until the post office opened under the name Lela.
Fannie Womble served as the first teacher in the Story (Lela) school, with John Purcell, J. V. Ford and J. T. Close as first trustees. Although the community was founded because of its abundance of good underground water, it did not keep pace with Shamrock (5 mi. E) and by 1920 many of the residents and businesses had moved to Shamrock. About the same time, the long dry creek flooded and the community of Lela, including the school, moved up the hill one-half mile north of its original site.
The discovery and production of natural gas brought renewed prosperity to this farming and cattle region in the 1920s. After the Lela School building burned in 1927, civic leaders arranged for the construction of a new brick school building that would be large enough to accommodate the increased population brought on by the economic growth. Although the 1928 brick school building originally housed all grades, the top two grades were discontinued after several years, and Lela students traveled to Shamrock to complete their education.
After nearly 90 years, the Lela School district closed in 1992 and was annexed to the Shamrock school district. Its history remains a strong part of the rural heritage of Wheeler County.