In January 1697, an important report arrived in Moscow from the voivode of Verkhoturye, Dmitry Protasyev: iron ore had been found on the Neva River, in the Ural Mountains. Samples of the ore were attached to the report. This message had strategic significance and quickly led to actions. From 1697 to 1699, decrees were issued mandating the construction of new ironworks in the Verkhoturye district, on the Tagil and Neva rivers, where the ore was discovered. In the first half of 1700, the establishment of metallurgical production began on the Neva, next to which a workers' settlement grew. On March 4, 1702, Peter I signed a decree transferring the Neva production to master Nikita Demidov, the owner of a factory in Tula. Demidov actively engaged in creating new enterprises in the Urals, and by the early 1720s, he built several ironworking factories, including the Byn'gi factory located seven versts from Nevyansk. His sons, Akinfiy and Prokofiy, continued their father's work. In 1769, Prokofiy Demidov sold the factory in Byn'gi and other Nevyansk factories to collegiate assessor Savva Yakovlevich Sobakin, who later changed his surname to Yakovlev. After Savva Yakovlev's death, his inheritance, including the Byn'gi factory, passed to his eldest son Peter, who became the patron of the construction of the Nikolsky Church in Byn'gi.

In the late 19th century, a copy of a decree from 1788 by Peter Savvich Yakovlev to manager Ivan Suslov regarding the construction of a church in Byn'gi was kept by the elder of the Spaso-Preobrazhensky Cathedral, Yakov Sukharev. The decree stated: “If possible, cast an iron church in Byn'gi in the name of St. Nicholas; if not, build a temple that would amaze.” Yakov Sukharev also recounted that Peter Yakovlev vowed to build a temple in Byn'gi if he obtained the Nevyansk factories. To construct the temple, the blessing of the diocesan authorities was required, which was received on September 1, 1788, from Bishop Varlaam Petrov of Tobolsk and Siberia. Construction began on May 10, 1789. The name of the architect is unknown, but it is assumed to have been a local Ural architect. The church combines elements of Baroque and Classicism. By the autumn of 1796, construction was completed, and on September 15, Bishop Varlaam received notification of the completion of the work. The consecration of the church took place on January 24, 1797.

The church is located in the center of the factory and has a cross shape with five domes and a bell tower. The architecture is executed in the Byzantine style with numerous cornices and stucco decorations. Soon after the completion of construction, the church was painted, but the frescoes have not survived. In 1819, after the consecration of the northern chapel, the church was divided into warm and cold parts, with a glazed partition installed. However, this disrupted the temperature balance in the building. By the mid-19th century, the church was in need of repair: the frescoes and gilding had faded, the plaster had fallen off, and the floors were deformed. Restoration began in 1852. Stone staircases were built, the roofing iron was replaced, stoves were installed, and the church became fully heated. In 1863, a southern chapel was arranged in honor of the Meeting of the Lord in memory of the abolition of serfdom.

In December 1925, a schismatic movement arose in the Russian Church, and the Byn'gi church fell under the jurisdiction of the schismatics until its closure before the Great Patriotic War. Services resumed in the mid-1940s. In 1987, Father Viktor Zyryanov became the rector of the church, who began restoring the dilapidated church. In 1995, the church was recognized as a monument of federal significance. Restoration began in the 2000s thanks to benefactors, including Yevgeny Roizman. The church, built in a style transitioning from Baroque to Classicism, has an unusual layout in the form of a cross with a square around the crossing. The architectural forms are harmonious and balanced. A description of the church from 1897 notes its strength and uniqueness in the Urals.