Mount Carmel was incorporated in 1961. The Town derived its name from the Mount Carmel Methodist Church which once stood where the Liberty Hill Cemetery is today. Mount Carmel,
a name that is very old is the Mount of the prophet Elijah in Palestine. Even today it is a sacred place and refuge.

The Town is located in upper-east Tennessee in the gently rolling foothills of the Appalachian Mountains. Situated in the northeastern most end of Hawkins County, it is one of five incorporated towns or cities in the county. The other four are Rogersville, the county seat, Church Hill, Surgoinsville, and Bulls Gap. It is located approximately 80 miles northeast of Knoxville, and adjacent to Kingsport, which is part of the Tri-Cities metropolitan area of Tennessee. The Great Smoky Mountains National Park is only an hour and a half drive away. The tourist towns of Gatlinburg and Pigeon Forge are located on the outskirts of the park.