The village of Gnilo is located on the right bank of the Tikhaya Sosna River and was founded in 1684. Its first inhabitants were likely Cossacks from the Ostrogozhsk regiment, who guarded the fortress city of Ostrogozhsk, performing watch and reconnaissance duties. The name of the village comes from the word "gnilovishche," which referred to a place where constant slush formed due to open springs.

In 1832, Gnilo was granted the status of a sloboda and became part of the Dalnepolubyansky volost. By 1880, the population of the village reached 1,123 people. In the same year, the construction of a stone two-story church began, which lasted almost 40 years. The church in honor of Saint George the Victorious was completed in 1892 and was built in eclectic and neo-Russian styles. During the Soviet era, the parish was devastated, but currently, the church is in the process of restoration.