The site upon which Sea Lake is situated was first visited by colonists in 1838. Sea Lake may have been given its name by an early settler,
Edward Eyre, from the Port Phillip area. Purportedly, the sea-like appearance of
Lake Tyrrell inspired Eyre. An alternative version of the naming of Sea Lake comes from a surveyors report of the time when planning the township (which lies to the south of Lake Tyrrell). It is purported that a surveyor mistook a mark on hand drawings "see lake" which had been used by the author of the drawings to mark a landmark. Lake Tyrrell is the largest
salt lake in Victoria, covering approximately . Much of the time, Lake Tyrrell is dry. However, the lake is occasionally fed by Tyrrell Creek. There is a salt extraction plant located in Sea Lake, processing the lake's salt deposits. A community was established after the arrival of the
Kulwin railway line in 1893. The post office opened on 2 October 1895. The Sea Lake Magistrates' Court closed on 1 January 1983. Sea Lake has a rich grain farming history and one of the first recorded stations in the area is Tyrrell Downs. The "Sea Lake", a body of fresh water south of Lake Tyrrell, was described in 1893 as "an assured and ample water supply" for the proposed Wycheproof to Mildura Railway. It supplied the town and surrounding farms which grew up around it, but in poor seasons it dried up. Alternate water was arranged, and the golf course now occupies the former Sea Lake. ==Local interest==