Warrion is a rural village 14 km north of Colac, western Victoria. It is situated between Lakes Colac and Corangamite, in an area with fertile soil of volcanic origin. Although the area is mainly a volcanic plain, the Warrion Hills are about in its centre. It is thought that the name was derived from an Aboriginal word describing either the hills or a wombat. (The volcanic ground provided easy burrowing for wombats, and parts were riddled with holes.) The Warrion pastoral run (1837) was one of several taken up by Hugh Murray in the Colac district.

In 1840 the area between the Warrion Hills and Lake Colac was occupied as a pastoral run, and a swamp, known as Camel Springs, was the stock watering place. In the 1860s the locality was subdivided for small farm selections. The area had also undergone rabbit infestation, but the proprietor of the remaining large pastoral holding successfully reduced their numbers. Small farms were able to succeed on the fertile land, which was suitable for dairying, orcharding and vegetables. A school was opened in 1874.

More closer-settlement activity occurred in the 1900s. In 1903 Warrion was described in the Victorian municipal directory as a rising township, with a hall, two churches (Anglican and Wesleyan) and a creamery. A branch factory of the Colac Dairying Company was later established there.

Warrion has a Uniting church, a public hall (1902), a recreation reserve and a cricket club. The school was closed in 1953 when a consolidated school was opened at Alvie, 8 km away.

Warrion's census populations have been:

census date population
1901 111
1911 427
1961 359
2006* 525
2011 307

* Includes Alvie and Coragulac