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The manor of Studley is recorded twice in the Domesday Book mostly as part of the lands of William son of Courbucion; who was appointed Sheriff of Warwick soon after 1086; where it reads, "In Ferncombe Hundred in Stodlei (Studley) 4 hides. Land for 11 ploughs. In lordship 2; 3 slaves. 19 villagers with a priest and 12 smallholders have 9 ploughs. A mill at 5s; meadow, 24 acres; a salt house which pays 19 packloads of salt; woodland 1 league long and half a league wide. The value was and is 100s. Swein held it freely." A further holding is listed as part of the land of William Bonavallet "William holds 1 hide in Stodlei from William. Land for 2 ploughs. In lordship 1 plough. Meadow 4 acres; woodland 3 furlongs long and 2 furlongs wide. Value 10s. Godric held it freely."

It is the site of both a castle, not the 19th century house called Studley Castle, and the remains of a medieval priory. The Augustinian priory was founded in the 12th century by Peter Corbizun but was closed at the dissolution under Henry VIII and was used as a source of stone for other local buildings. Nothing remains today apart from the use of the name priory in a few local building names such as Priory Farm, which now much modernised, embodies a few fragmentary portions of a conventual building. A gabled west wall of stone rubble contains the remains of a large 14th century window. A few medieval sculptured fragments are built on to the walls.

Studley is also known for being the site of a sewing needle and surgical needle making industry.

This specialisation started when Elizabeth I permitted a number of Huguenot refugees to settle here, bringing this rare craft with them. Their expertise enabled English needle manufacture to catch up with French methods and Studley was a leading area in this advance, gaining a European and even worldwide reputation.

From the 19th century precision made surgical needles were in demand and with advances in manufacturing technology such was the demand that over 3,000 workers were employed. In 1977 the old factory where needles were made was burnt down, and the production of "Aero" needles moved to a nearby site. The original factory site now contains a supermarket, other retail outlets, and housing. One of the streets in the village is named "Crooks Lane", ostensibly because the crooked needles from the original factory were dumped at the end of this lane, but the road was there before the village had a needle factory.