In 1913, Arthur Day established his funeral business after working with his uncle, the owner of McDaniel Furniture Store. For many years, Day operated the funeral home from a stately home at the northeast corner of Walnut and Seventh Street. After Day’s untimely death in 1947, his daughter and son-in-law, Gayle and Stephen Campbell, along with new partners, Bill and Elaine Apple, began to operate the funeral home.

In 1954, the Day Funeral Home moved into a new location on Indiana 46 East. As the city of Bloomington grew around the funeral home, the business became located at one of the most premiere spots in Bloomington.

In 1966, Jerry and Sue Ellenwood also became partners in the business and helped operate the funeral home until 1994 when the business was acquired by the Loewen Group of Vancouver, British Columbia (later known as Alderwoods Group). In August 2001, Day Funeral Home built a new funeral home on 4150 E. Third St. and began serving families in May 2002.

In 2006, the funeral home was purchased by an affiliate of Service Corporation International® as part of the Dignity Memorial® network of funeral homes.