Octavia was established in 1887 when the Fremont, Elkhorn and Missouri Valley Railroad was extended to that point. It was named for Octavia Speltz, a pioneer settler.
A post office was established in Octavia in 1888, and remained in operation until it was discontinued in 1996.
Octavia is located at 41°20′50″N97°3′34″W (41.347281, -97.059448).
According to the United States Census Bureau, the village has a total area of 0.16 square miles (0.41 km2), all land.