The Liven Local History Museum, one of the oldest in the Oryol region, began its work on November 24, 1918. In the summer of the same year, on August 3, the historical and archaeological society organized an exhibition in the building of the Liven Real School, which the local newspaper "Svobodny Pakhar" called the first exhibition of historical and archaeological monuments of Liven.

The museum was opened in the building of the former Russo-Asian Bank, where the city administration is now located. Its founder and first director was M. K. Znamenky, an artist and historian, who, along with curator A. A. Kirillov, collected significant collections from devastated noble estates. At the time of its opening, the museum had 11 departments, and by 1929, their number increased to 14 due to the addition of materials on the revolution, industry, and agriculture.

The museum actively collaborated with volunteers. In 1925, a society of friends of the museum was created, consisting of 27 people, including eight teachers. That same year, the museum was renamed a local history museum. The first exhibition began with a stuffed brown bear and included collections of engravings, corals, geological samples, herbariums, stuffed animals, paleontological finds, and historical artifacts, including weapons and household items. The museum also housed works by famous artists and personal belongings of composer Anton Arensky.

Before World War II, there were 37 mills in Liven, and the museum had a model of one of them. In November 1941, as the Germans approached the city, museum director Gerling attempted to evacuate the collections but was removed from his position. Some exhibits were hidden in basements and later sent towards Elets. As a result of the war, the museum was completely lost and later rebuilt from scratch.

In 1959, local historian S. P. Volkov published a book on the history of the region, marking the beginning of the museum's revival. Oleg Yakubson, inspired by Volkov, began collecting exhibits with his students, leading to the creation of a new museum in 1966. The museum was located in a small building on Dzerzhinsky Street and opened to visitors on September 1, 1967.

In 1984, the museum was awarded the title of "People's Museum," and in 1987 it became a branch of the Oryol Regional Local History Museum. The new director O. N. Bulatnikov was able to establish contacts with local authorities, which helped the museum to develop. In 1995, the museum received new premises, and in 1998, an entire building.

On June 28, 1998, the museum had its third opening in the new building with six exhibition halls. The exhibition includes 11 departments dedicated to nature, archaeology, ethnography, the revolution, repressions, the Great Patriotic War, and other topics. The museum emphasizes the fates of Liven residents, many of whom gained international recognition.

The museum actively replenishes its collections through personal archives and is supported by both local residents and government bodies. In 2006, 3,447 items of federal property were transferred to the museum.