Sutton began as a land reservation, surveyed by Robert Hoddle in 1835. In July 1866 the land reserve was again surveyed, this time by Edward Twynam who named the area after Joseph Sutton, the first person to come along the road at the time of the survey. He was a local resident, living at the Woodbury homestead, and son-in-law to William Guise, owner of Bywong Estate.
The village of Sutton was officially gazetted in July 1867. The layout of the village has changed slightly over the past 150 years. Street names acknowledged Royalty, officials, pioneers and local gold rushes.
At the 2016 census, Sutton "state suburb" (including its surrounding area, which is partly south of the Federal Highway in Queanbeyan–Palerang Regional Council) had a population of 1,660. It had a median age is 44, children aged under 15 years made up 17% of the population and people aged 65 years and over made up 16% of the population. Of the families in Sutton, 51% were couple families with children, 40% were couple families without children and 8% were one-parent families.