Despite the name Isola (island), the town is entirely on the mainland. There are several theories about the name, which may derive from Greek mythology or may be a corruption of a Greek word. Geographically the seaside district of the town of Capo Rizzuto is a peninsula. Elsewhere the main historical attraction, the powerful 16th-century fortification in the district of Le Castella, stands on a piece of land connected to the mainland by a narrow causeway.
In 1977 the archaeologist Domenico Marino discovered and excavated a site on the Capo Piccolo promontory with important Early Bronze Age II and Middle Bronze Age I-II artifacts of Minoan origin, demonstrating early trade contact between the eastern Mediterranean and Italy. The finds are on display in the National Archaeological Museum in nearby Crotone.