Hallam was platted in 1892 when the Chicago, Rock Island and Pacific Railroad was extended to that point. The land was sold by Frederick Schneider, who was asked to name the village. However, Schneider’s proposals were already names of towns in Nebraska, so the first landowner in the village, Jacob Schadd, was given the honor of naming the settlement. Schadd suggested Hallau, after his hometown in Switzerland. However, due to a transcription error at the post office, the name was recorded as Hallam rather than Hallau.