The town's name comes from a story of a milkmaid named Marika. She was blessed with a son by Swamy Chennakesava. To honour this event, she built a small temple. Over time, a village formed around this temple, originally called Marikapuram, which later became Markapuram. The temple has seen many renovations, becoming a prominent site dedicated to Sri Chennakesava.
Markapuram was part of Kurnool District until 1971. It was then restructured into a new district, which included several mandals. This change helped in the administrative development of the area, allowing for better governance and resource management.