It is a primarily rural village.
Holme Lacy is not from Old Norseholmr “island” like other places of the name Holme, but from the fairly similar Old Englishhamm “land in a river-bend“. The name was recorded as Hamme in the Domesday Book in 1086.
The name has varied through history; it has also been known as Homme Lacy (1396)  Hamlayce (1648), Humlachie (1701) and Hom Lacy (1836).
The town was an estate of the Bishop of Hereford and held by Roger de Lacy, which is where the “Lacy” affix comes from. De Lacy was a Lord of the manor, indicating that a feudal system was in existence during the Middle Ages.
William I of England had returned Hamme to Bishop Walter and in 1086 the total population included:
- 16 villeins
- 4 bordars (Villeins of the lowest rank who held a cottage at their lord’s pleasure, for which they rendered menial service)
- 1 reeve
- 1 male and 2 female slaves
- 1 priest
- and 1 Frenchman who between them had 20½ ploughs.
The priest shows there was a church at Holme Lacy. There were also two ploughs under the lordship’s tenure in existence.
The village comes under the jurisdiction of the West Mercia Constabulary.