Incorporated in 1989, the City of Dana Point is named after Richard Henry Dana Jr. (1815-1882), a Harvard-trained lawyer, seaman, and author of the classic sea journal, Two Years Before the Mast (1840). In his journal, Dana documents his voyage from Boston around Cape Horn to California on the merchant ship, Pilgrim. Therein, Dana describes the area once known as Capistrano Bay, as "the most romantic spot on the California coast." Today, Capistrano Bay is known as Dana Point.

Located in southern Orange County, California, Dana Point is approximately one-half way between Los Angeles and San Diego, and is bordered by the cities of Laguna Niguel and Laguna Beach to the north, San Juan Capistrano to the east, and San Clemente to the south.