Pico is an island in the Central Group of the Portuguese Azores. The landscape features an eponymous volcano, Ponta do Pico, which is the highest mountain in Portugal, the Azores, and the highest elevation of the Mid-Atlantic Ridge. In the tradition of the Portuguese poet, Raul Brandão, Pico is referred to as the Ilha Preta ("Black Island"), for its black volcanic earth, responsible for its UNESCO-designated historical vineyards that allowed the development of the island. Geologically speaking, Pico is the most recently formed island of the Azores, with around 300,000 years.

Although the Azores have been inhabited since 1439, settlement on Pico only started in the 1480s, precisely when Pico became an integral part of the captaincy of the neighboring island of Faial. Pico is thought to be the last of the islands of the Central Group to be occupied.

The first setlement, Lajes do Pico, had the contribution of settlers of Portuguese origin, from different parts of the metropolis, who probably would have already been on Madeira Island or even on the previously populated Azorean islands, namely in Terceira. This included different social groups: individuals belonging to a small nobility, who are distinguished by the possession of land and lifestyle; secular and regular clergy, of which the Franciscan presence stands out; and a third group, divided between merchants, craftsmen, rural workers and artisans. Besides these, other minorities such as jews, proven present since the beginning of the 16th century, and slaves, oriented towards rural and domestic work, constituted the island's first inhabitants.

In the mid 16th century, a new area to the north of the island became equally attractive to new settlers. Thus, in 1542, the inhabitants of this area asked King João III to create a second village on the island, due to it being barely provided of justice, which led people stealing and profiting off others, and so São Roque do Pico was created.

The last eruptions of the island took place 1718 and 1720 and generated three volcanic cinder cones (Mistérios): Santa Luzia and São João in 1718 and Silveira in 1720.

In 1723, Madalena was elevated to the status of "town", confirming its economic importance to the island, and its commercial links to Faial (Horta had been the residence of many of the island's property-owners and winemakers).

Its settlers were initially occupied with wheat cultivation in addition to the exploration of the woad industry (based on lichens that were exported to Flanders to produce commercial dyes), and heavily influenced by export industries of its island neighbor, Faial.

Quickly, the viticulture industry, helped by the rich soils and micro-climates, had allowed to expand the lands cultivating grapes. Its development would occur uninterrupted along the margins of history except for volcanic eruptions during the 18th century; the viticulture and "orange cycle" would expand the activities on the island throughout the period. Pico's famous verdelho, for more than two centuries, was appreciated in many countries (including England and in the Americas and even reached the palaces of the Russian czars). But, the spread of powdery mildew and phylloxera during the middle of the 19th century destroyed many of the vineyards, creating a crisis on the island that lasted until the 20th century.

The presence of American and British whalers in the waters of the Azores at the end of the 18th century introduced a new economy that would serve to stabilize the economy until new casts were introduced on the island. Spermwhale hunting became the primary industry around the island until it was abolished in 1986. The previous whale factory was rebuilt into a museum.