In 1940, the village formerly known as Dover transformed its identity to become the Village of Westlake, a change initiated to distinguish it from another Ohio community bearing the same name.

This evolution is detailed in an excerpt from "Westlake: The Origin of the Name" by Denise L. Rosenbaum, featured in the November 3, 2015, issue of the Westlake-Bay Village Observer:

Originally founded as Dover township in 1811, the area that is now Westlake may have been named after the noted Dover Point on Lake Erie's shores. Back in the mid-19th century, 'Dover' was a common choice for community names, with as many as 17 Dovers recorded in the 1850 federal census, including five in Ohio alone. By the early 20th century, only two Dovers remained in Ohio: Dover Village in Cuyahoga County, which had been incorporated from the township in 1911, and another Dover in Tuscarawas County. This similarity led to mix-ups, with mail and even a fire engine intended for Dover Village mistakenly sent to its namesake in Tuscarawas County. To resolve this, the United States Post Office urged a name change as early as 1915.

In 1940, after much deliberation and a community poll, the Cuyahoga County Court of Common Pleas officially sanctioned the name Westlake Village. However, the exact origin of the 'Westlake' name remains a mystery. A November 14, 1939, article in the Plain Dealer disclosed that the residents' choices for the new name included "Westlake, Clague Park, Claguewood (in honor of a pioneer family), and Park Ridge." Notably, 'Westlake' was already familiar to residents as one of the local telephone exchanges, alongside others like Trinity, Spring, Edison, and Orchard.

As suburbs grew after World War II, Westlake became part of this population shift. By 1950, the population of the village stood at 4,912 – twice what it had been at the turn of the century. In 1960, it had jumped to 12,906, a 162% increase over 1950.

This phenomenal growth rate led to an interest in planning to shape the future of Westlake, which became a City in 1957. During the early 1960s, city officials enacted the city’s first guide plan and municipal zoning ordinances. These plans separated industry to the northern parts of the city and set aside specific areas along principal streets for commercial activity and multifamily development.