In the prehistoric era the Canelli area was the site of numerous settlements of the Ligurian Stazielli people. In the Roman period the town acquired a certain importance, surrounded by estates with vineyards. After a long period of decline Canelli began to flourish once more in the high Middle Ages, so much so that in 961 it was termed a city. Towards the mid eleventh century the descendents of the counts of Acqui took up residence here. In the sixteenth and seventeenth centuries Canelli was involved in many wars.

Wine-growing was common in Canelli as far back as the Roman age. After a period of inactivity, the cultivation of the Moscato Bianco grape variety took hold, with the Canelli name becoming an official appellation. Apart from Moscato, varieties cultivated include Barbera, Dolcetto, Cortese and Chardonnay. There are around 580 wineries, and the construction of wine-making equipment is another important industry.

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There are many natives of Canelli who have made their town famous throughout the world thanks to their achievements and business, forming a long list of famous wineries and more recently, but no less important, manufacturers of wine-making equipment. Giancarlo Aliberti (1662-1727) merits equal renown, for honouring his land with his art: he was the most acclaimed Piedmontese Baroque artist at the beginning of the eighteenth century.