Naples was part of the Phelps and Gorham Purchase. The town was established in 1789 along with Ontario County, on the old Native American village Nundawao, and settlement began the following year. The town was also part of the Underground Railroad, with old houses still having hiding spots to this day. The town, known in 1789 as "Watkinstown" and in 1796, they called the town "Middletown". And then, finally, the town was given the name "Naples" in 1808. Naples was not quickly settled due to its rough terrain. Part of the new town was used to form the Town of Italy in 1815, and another part was used to form part of the Town of Springwater in 1816. Grapes, first planted in the 1860s, led to the modern grape and wine industry of the town and also led to the annual grape festival which began in 1961, one of which was broadcast on the World Food Network. The village is home to St. Januarius Catholic Church, a unique architectural design by James Johnson. With the local grape industry as inspiration, much of the church was designed with grapes in mind. The Widmer's Winery produces Manischewitz wine. Naples Academy was founded in 1860. The main building of the current Academy was built during the New Deal program during the Great Depression by one of the public works programs set out by FDR. The school district currently serves grades Pre-K through 12, with grades Pre-K through 6 being in the Elementary School and grades 7 through 12 in the Jr/Sr High School across the street.
As of the census of 2000, there were 2,441 people, 986 households, and 674 families residing in the town. The population density was 61.8 people per square mile. There were 1,112 housing units at an average density of 28.2 per square mile. The racial makeup of the town was 97.91% White, 0.25% Black or African American, 0.08% Native American, 0.49% Asian, 0.25% from other races, and 1.02% from two or more races. Hispanic or Latino of any race were 0.66% of the population. There were 986 households out of which 31.0% had children under the age of 18 living with them, 54.8% were married couples living together, 10.2% had a female householder with no husband present, and 31.6% were non-families. 26.0% of all households were made up of individuals and 12.0% had someone living alone who was 65 years of age or older. The average household size was 2.46 and the average family size was 2.95. In the town, the population was spread out with 26.1% under the age of 18, 4.3% from 18 to 24, 27.6% from 25 to 44, 27.0% from 45 to 64, and 15.0% who were 65 years of age or older. The median age was 40 years. For every 100 females, there were 92.4 males. For every 100 females age 18 and over, there were 87.9 males. The median income for a household in the town was $36,813, and the median income for a family was $42,566. Males had a median income of $34,508 versus $23,333 for females. The per capita income for the town was $17,944. About 8.9% of families and 10.5% of the population were below the poverty line, including 12.9% of those under age 18 and 14.2% of those age 65 or over.