The name of the city is a combination of the Azerbaijani words "dash" (stone) and "kasan" (cutter), which literally means "stone cutter".

The city of Dashkasan has established some distance from the mines, on the northern slopes of the Murovdag and Shahdag ridges, at an altitude of 1600-1800 m above sea level. It began to form on the basis of a temporary builder's settlement and a small mining settlement that arose during the preparation for the development of the richest iron ore deposits of industrial importance.

The modern city of Dashkasan consists of three parts. The second and third city-type settlements of Dashkasan were built on the top of the mountain, on the site of the temporary geological settlement created in 1943, 85 km. The scientific research that revealed the presence of iron ore minerals in the area laid the foundation of the new city. Since 1946, the development of the iron ore deposit and the construction of a settlement on the place of the temporary residence of the geological expedition began. In 1948, the settlement received the status of a city.

On the outskirts of the city there is a monument erected in memory of the Martyrs of the Great War and a historical bridge. On July 8, 2022, the master plan of the city's development until 2038 was approved.

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