There are several theories as to the origins of the name. It may be derived from the Sanskrit Svargadhāma, meaning Heavenly Abode[2] although this would have resulted in Punjabi Sargdham. Sargodha may be derived from a legend about a pond where an old Hindu Sadhu Godha used to live, as the Punjabi word for pond is Sar: Sargodha might translate to "the pool of Godha".[3] However, Punjabi would reverse the order of the component words (for example, Amritsar means "the pool of nectar." The etymology must lie in Sar + Godha, with Sar being the adjective and Godha the noun.
Just over a century ago, there was a well owned by a Hindu, Godha, which was known as Gol Khūh, Punjabi for Round Well, and travelers used it as a resting place. The well eventually went out of use; now, there is a market where Gol Khūh was and a grand mosque above the market and it is known as "Gol Chowk", which is the centre of downtown Sargodha today.
Sargodha was a small town at the beginning of the British Raj but, due to its geographical location, the British Royal Air Force built an airport there. It took on greater importance after the Partition of India for the Pakistan Air Force.