Sterley is on Farm Road 2286 seven miles northeast of Lockney in northwest Floyd County. It began around 1927–28, when the Fort Worth and Denver City Railway was built through the area, and was named for W. F. Sterley, the general agent for the railroad. Early businesses included a post office, established in December 1928, Harvey House restaurant, and a depot. A grocery store was established in 1934 by the Howell family. By 1948 the town had a population of ninety, a post office, a school, railroad shops, and two churches. The community was at the junction of two branches of the Fort Worth and Denver City in a predominantly agricultural region. In 1980 Sterley reported a population of seventy-five. A gin and large elevator were still in operation, although the post office had closed in February 1969. In 1990 the population was estimated at ten.
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