Eula is on Farm Road 603 some seven miles southwest of Clyde in western Callahan County.
A post office was established there in 1889 with W. B. Ferguson as postmaster. In addition to Ferguson, early settlers included Wylie Miller, Ison Harris, Jules Janette, and Jim Massie, as well as the Merrick brothers and the Gardner and Farrar families. Eula's population was only seventeen in 1903, and in 1913 its post office was closed. The community, however, later revived somewhat, and by 1940 it reported seventy-five residents, three stores, three churches, and a school. In 1990 its population was estimated as 125. In 2000 its population remained the same.