The place got its name from the historic Daga Trashiyangtse Dzong which was established in 1651 by Zhabdrung Ngawang Namgyel, the first man to unify Bhutan.

This historic landmark still functions as the district administration Centre today. Increased migration from other districts has resulted in the cultural diversity of the region with the introduction of new festivals and traditions.

One of the most interesting features of Dagana are the three stone Megaliths, known as “Sky Pillar Rock” (Do Namkhai Kaw), “The Rock of Ancient Steps” (Do Kelpai Genthey) and “The Frontier Sky Fortress” (Tha Namkhai Dzong).

Agriculture is the main source of livelihood for the inhabitants of the Dzongkhag. Two of the main crops cultivated in the region are oranges and rice.