Grey Eagle was platted in 1882, and named after an early settler who had shot an eagle near the original town site. The town is located on the banks of Trace Lake. Grey Eagle is located less than five miles from Burtrum, Minnesota, a town of 144 notable for its abandoned schoolhouse.
As of the census of 2010, there were 348 people, 165 households, and 83 families living in the city. The population density was. There were 189 housing units at an average density of. The racial makeup of the city was 99.4% White and 0.6% Asian. Hispanic or Latino of any race were 0.9% of the population. There were 165 households, of which 24.2% had children under the age of 18 living with them, 42.4% were married couplesliving together, 4.2% had a female householder with no husband present, 3.6% had a male householder with no wife present, and 49.7% were non-families. 44.8% of all households were made up of individuals, and 20.6% had someone living alone who was 65 years of age or older. The average household size was 2.11 and the average family size was 3.01. The median age in the city was 44.6 years. 22.1% of residents were under the age of 18; 7.2% were between the ages of 18 and 24; 21.5% were from 25 to 44; 27.3% were from 45 to 64; and 21.8% were 65 years of age or older. The gender makeup of the city was 51.1% male and 48.9% female.
2000 census
As of the census of 2000, there were 335 people, 151 households, and 78 families living in the city. The population density was 902.8 people per square mile. There were 164 housing units at an average density of 442.0 per square mile. The racial makeup of the city was 97.01% White, 0.90% African American, 0.30% Asian, and 1.79% from two or more races. Hispanic or Latino of any race were 0.30% of the population. There were 151 households, out of which 27.8% had children under the age of 18 living with them, 41.1% were married couples living together, 4.6% had a female householder with no husband present, and 48.3% were non-families. 43.0% of all households were made up of individuals, and 20.5% had someone living alone who was 65 years of age or older. The average household size was 2.22 and the average family size was 3.10. In the city, the population was spread out, with 23.6% under the age of 18, 9.6% from 18 to 24, 29.0% from 25 to 44, 19.4% from 45 to 64, and 18.5% who were 65 years of age or older. The median age was 38 years. For every 100 females, there were 95.9 males. For every 100 females age 18 and over, there were 92.5 males. The median income for a household in the city was $32,917, and the median income for a family was $38,750. Males had a median income of $28,958 versus $18,750 for females. The per capita income for the city was $15,952. About 12.8% of families and 12.2% of the population were below the poverty line, including 12.9% of those under age 18 and 12.1% of those age 65 or over.
