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Betagi became a police station in 1938 and was upgraded to an upazila on September 14, 1983.  Nothing  is  definitely  known  about  the  origin  of  the  upazila  name.  There  is  hearsay  that  the  name Betagi  has  been  originated  from  the  word  Bedagi  meaning  Not  Guilty.  In  the  eighteen  century,  the  East India Company snatched  away the Zamindari title from the local  influential Zamindar Mr. Ainudd in Sikder who  revolted  against  the  British  for  forcible  salt  cultivation.  The  company  brought  accusation  against  the Zamindar and the people of this locality mentioning them as pirates. This notion was subsequently removed  when Chini Bibi, an influential lady, pleaded to the company that the people are not guilty, which in Bengali means  Bedagi.  The  ward  Bedagi  was  colloquially  known  as  Betagi.  The  original  inhabitants  of  this  area might belong to Austric origin.