According to history, gold had flourished in the locality that prompted people from the neighboring towns flocked into this place in their quest for the golden fame and fortune. It was said that on January 17, 1817, A Spanish soldier who was on patrol was tasked to write down the names of the places he would come across within the course of his mission. He happened to pass by a group of men who were digging gold on one of the gold mines. Talking in Spanish, the soldier inquired about the name of the place. The natives, who did not understand the language, thought the soldier was asking them how many gold stones they have already gathered. In response, they answered “libo na” meaning a thousand already. The Spanish soldier jotted the word “Libona” in his record book believing it was the name of the locality.
Libona was once a Municipal District of Maluko, now the Municipality of Manolo Fortich, Bukidnon, created under EO No. 5 dated April 4, 1917 issued by then acting Governor Ponciano C. Reyes of the defunct Department of Mindanao and Sulu. Due to its progressive stride in both the socio-economic and political infrastructure, Libona was finally able to separate itself from her mother municipality when it was granted political identity. then President Carlos P. Garcia, issued EO No. 272, dated October 4, 1957 declaring Libona a regular municipality. By virtue of the said order, Libona became the 14th municipality in the province of Bukidnon.