The town's name is believed to be a corruption of Dalwood, a pastoral run name used from 1844, which was believed to be derived from an Aboriginal word. In 1903, it was spelled Tallwood on a survey plan with an annotation that it has been altered to Talwood, a name which was shown on a 1911 survey plan.
Gamilaraay (Gamilaroi, Kamilaroi, Comilroy) is a language from South-West Queensland and North-West New South Wales. The Gamilaraay language region includes the landscape within the local government boundaries of the Balonne Shire Council, including the towns of Dirranbandi, Thallon, Talwood and Bungunya as well as the border towns of Mungindi and Boomi extending to Moree, Tamworth and Coonabarabran in NSW.
- "Talwood - town in Goondiwindi Region (entry 33213)". Queensland Place Names. Queensland Government. Retrieved 4 July 2017.
- "Indigenous Language map of Queensland". State Library of Queensland. Retrieved 23 January 2020.