The town is located on the southern rim of an impact crater, the Vargeão Dome.[6][7] Vargeão's city hall is located inside the crater. The local population is well aware of the impact origin of the structure, to the point that the town's official nickname is Meteor City (Terra do Meteorro).
Its inhabitants are predominantly of Italian descent. A large floodplain (in portuguese: várzea) in the area gave rise to the name Vargeão (very large floodplain, in portuguese).
^"Divisão Territorial do Brasil" (in Portuguese). Divisão Territorial do Brasil e Limites Territoriais, Instituto Brasileiro de Geografia e Estatística (IBGE). July 1, 2008. Retrieved December 17, 2009.