Alda, originally named "Pawnee" after the Pawnee Indian Tribe, came into existence in 1860. The community's name later changed to "Alda" after the first child, named Alda, was born in the community to a Union Pacific Railroad foreman.

The village started with a section house, railway station, grocery stores, school house, and storage building for grain. The village was incorporated in 1916.

Located in the south-central part of Nebraska in Hall County, Alda is served by U.S. Highway 30. Alda is five miles north of Interstate 80; seven miles west of Grand Island, NE; 96 miles west of Lincoln, NE; and 142 miles west of Omaha, NE.

Basic economic activities of Alda include farming and manufacturing. Since 1990, several manufacturers in Alda have expanded and housing construction has increased.