It was founded in 1751 as the village of Kamen (Камень) and granted town status in 1915.
Within the framework of administrative divisions, Kamen-na-Obi serves as the administrative center of Kamensky District. As an administrative division, it is, together with one rural locality (the station of Plotinnaya), incorporated within Kamensky District as the town of district significance of Kamen-na-Obi. As a municipal division, the town of district significance of Kamen-na-Obi is incorporated within Kamensky Municipal District as Kamen-na-Obi Urban Settlement.
As an administrative division, prior to September 2015 Kamen-na-Obi and Plotinnaya were incorporated separately into the town of krai significance of Kamen-na-Obi—an administrative unit with the status equal to that of the districts. As a municipal division, the town of krai significance of Kamen-na-Obi was incorporated as Kamen-na-Obi Urban Okrug. The status of both units was changed in September 2015, when the town of krai significance was demoted to a town of district significance and subordinated to Kamensky District, while the urban okrug was demoted to an urban settlement within Kamensky Municipal District.
The main industries are food-processing and brick and furniture manufacture.