Bernice was founded in 1912, after Rose Mode and his partner, Charles Lee, bought of land in the Horse Creek Basin of northwestern Delaware County. The town was named for Mode's daughter, Bernice. A post office was established on February 12, 1913, and the town soon become a local agricultural center. By 1918, Bernice had an estimated population on nearly 400 people. Businesses included a bank, a milliner, a grain elevator, a sawmill, a hotel, a flour mill and three general stores. The population declined after World War I and the Great Depression from 198 in 1920 to 162 in 1930, and 91 in 1940. After World War II, population growth rebounded to 318 in 1980.