Hella is one of three important regional centres in South Iceland, the other two being Selfoss to the north-west and Hvolsvöllur to the south-east. It is a trading and agricultural centre located on the east bank of the Ytri-Rangá river, and provides the neighbouring farms with a wide range of services.

Originally, Hella was a shop built on the site of a small farm called Gaddastaðir until it became a trading centre in 1927. And since the large cooperative Kaupfélagið Þór opened up a department store there in 1935, its population has grown steadily. Ten kilometres north, is Gunnarsholt, an old farm abandoned in 1925, but now the site of the State Soil Reclamation (Landgræðsla Ríkisins), an experimental station for cultivation of grain.

Hella is a convenient point for seeing some of the most notable sights and attractions in South Iceland. One nearby place is Ægissíða, 2 km away on the wester bank of the river, with 12 caves believed to have been made and used by some Irish monks and early Christian recluses before the arrival of the first Vikings in the 9th century. Tourist services in town include a hotel, sleeping-bag accommodation, campsite, car rental, restaurant and a golf course.