The church takes its name from the small settlement of Danmark, though the origin of that name is uncertain. One old theory, recorded by the 16th-century writer Olaus Magnus, links it to a legend of war spoils taken from a defeated Danish enemy. Other suggested explanations connect it to Danish settlers, or to an Old Norse word for wet or marshy ground, meaning the name might simply describe 'the woodland by the boggy meadows'. No single theory is confirmed.
Danmarks kyrka was first recorded in written sources in 1291, and its oldest surviving brick structure dates from the 1300s. By the close of the 15th century the building had largely taken the form seen today, though it was later altered and rebuilt both inside and out following fires that damaged the church in 1699 and 1889.
The church stands close to Linnés Hammarby, and between 1758 and 1778 it served as the home parish church of the naturalist Carl von Linnaeus.
Inside, visitors can see medieval wall paintings attributed to Johannes Rosenrod and to Albertus Pictor, one of the best-known painters of church interiors in this part of Sweden. The chancel windows date from 1958 and were made by Julia Lüning. A more unusual claim to fame is the weathercock on the tower, made in the late 19th century, which was named 'Weathercock of the Year' in 1989 by a Swedish enthusiasts' society dedicated to church weathercocks.
The church's mechanical organ was built in 1958 by the Danish firm Marcussen & Sön and stands near the choir; it replaced earlier instruments dating back to the 18th century, one of which was later moved to another church.