Cóbdar perches on a mountainside in the beautiful Sierra de los Filabres mountain range, to the east of the Sierra Nevadas. The origins of the pueblo go back to the time of the Moorish conquest with the construction of a fortress on top of the mountain overlooking the village. The name of the town comes from the Arab word Qawda, which means elevated mountain tip, referring to La Piedra "the Stone", the elevated marble hill under which the town is situated.

In 1490 the Spanish King gave Cóbdar to the second Count of Tendilla, Don Iñigo Lopez de Mendoza, who in turn sold it to the bishop of Malaga, Don Diego Ramirez de Villaescusa de Haro as payment of a debt. In 1573, 24 new settlers accepted the conditions to settle in Cóbdar. At this time local economy was agriculture based with the predominance of the olive tree, fruit trees, carob trees.