For many years Calheta was mainly a landing point for those heading to Rabaçal. New roads and, during the period of regional autonomy, coastal tourism facilities, leisure spaces, shops and restaurants turned the parish into a destination for holidaymakers and visitors, as well as local residents.
The place name refers to a small cove in the rugged coast, where a ship could approach the shore. According to the chronicler Jerónimo Dias Leite, Zarco's men landed there and the captain named it Calheta.
The parish's creation date is unknown, but it likely dates from between 1461 and 1502, when the place was elevated to a town. The parish church, dedicated to the Holy Spirit, keeps 16th-century features alongside later alterations. The original chapel of Nossa Senhora da Estrela is now in ruins, though a sculpture from it is held by the Funchal Museum of Sacred Art.
