Geographically, Nora is situated by the Nora lake.

Nora received its charter in 1643. The government had requested the inhabitants of both Nora and the adjacent town Lindesberg to move together into a newly chartered city called Järle. However, the government proved unsuccesful, and instead granted both Nora and Lindesberg independent charters at that year.

Many wooden houses built in the 18th and 19th century have been spared by fires and demolition, making the town Nora one of Sweden's best preserved wooden towns. Eksjö and Hjo are two other example, and they have together with Nora initiated a wooden-town development project. As part of the old city structure are cobbled street with small houses and shops by small windling street. "Så liten stad, så mycket smak" (Small town, much flavor is also a common female name in Scandinavia. It was for instance the name of protagonist in Henrik Ibsen's A_Doll's_House (1879).