Webb was founded circa 1880. The first post office was founded in 1880 and named Hood for one of the earlier settlers. In 1882, Judge James L.A. Webb, a Confederate veteran and a University of North Carolina graduate, operated the only store there and later the Hood Masonic Lodge was built. There was one saloon at that time called "The Razzle Dazzle". The town was incorporated in 1905.
In those days most of the groceries and necessities were brought to Hood by flat bottom boat from Sharkey, being hauled down the river from Friars Point. Cassidy Bayou was navigable then and was maintained by the government from Sharkey to Hood. The town was later renamed in honor of Judge Webb.
In July 2001, Earnestine Dixon became the first African American mayor of the town, serving one term from 2001-2005.
Marrell Dixon, the son of Earnestine Dixon, became the first person to play any type of professional sports (Semi Pro Football Memphis Panthers-2007, Tupelo Fireants (Arena Football) 2003-2004). He was also the first person from Webb to play football at Mississippi State University.
Webb is located at 33°56′49″N 90°20′43″W (33.947045, -90.345304).
According to the United States Census Bureau, the town has a total area of 0.4 square miles (1.0 km2), all land.
As of the census of 2000, there were 587 people, 225 households, and 135 families residing in the town. The population density was 1,380.0 people per square mile (527.1/km²). There were 251 housing units at an average density of 590.1 per square mile (225.4/km²). The racial makeup of the town was 35.09% White, 61.33% African American, 2.04% Asian, and 1.53% from two or more races. Hispanic or Latino of any race were 0.85% of the population.
There were 225 households out of which 26.2% had children under the age of 18 living with them, 33.3% were married couples living together, 20.9% had a female householder with no husband present, and 40.0% were non-families. 35.6% of all households were made up of individuals and 14.7% had someone living alone who was 65 years of age or older. The average household size was 2.61 and the average family size was 3.47.
In the town, the population was spread out with 26.1% under the age of 18, 12.9% from 18 to 24, 26.4% from 25 to 44, 18.6% from 45 to 64, and 16.0% who were 65 years of age or older. The median age was 35 years. For every 100 females there were 95.7 males. For every 100 females age 18 and over, there were 96.4 males.
The median income for a household in the town was $25,000, and the median income for a family was $29,063. Males had a median income of $26,500 versus $23,125 for females. The per capita income for the town was $12,272. About 16.2% of families and 26.6% of the population were below the poverty line, including 39.4% of those under age 18 and 26.1% of those age 65 or over.
The Town of Webb is served by the West Tallahatchie School District.
As of 2002 some children in Webb attended the North Sunflower Academy in unincorporated Sunflower County, and Strider Academy in Charleston.Mamie Till Mobley—mother of Emmett Till; born in Webb and moved to Argo, Illinois as an infant.