story (n.1)

late 14c., "relation of incidents" (true or false), from Old French estoire, estorie "story; chronicle, history" (12c., Modern French histoire), from Latin historia "narrative of past events, account, tale, story," from Greek historia "a learning or knowing by inquiry; an account of one's inquiries; knowledge, account, historical account, record, narrative," from historein "be witness or expert; give testimony, recount; find out, search, inquire," and histōr "knowing, expert; witness," both ultimately from PIE *wid-tor-, from root *weid- "to see," hence "to know."

It is thus related to Greek idein "to see," and to eidenai "to know." Beekes writes of histōr that "The word itself, but especially the derivations ... that arose in Ionic, have spread over the Hellenic and Hellenistic world together with Ionic science and philosophy." 

In Middle English, not differentiated from story (n.1); sense of "narrative record of past events" probably first attested late 15c. Meaning "the recorded events of the past" is from late 15c. As a branch of knowledge, from late 15c. Meaning "a historical play or drama" is from 1590s. Sense of "systematic account (without reference to time) of a set of natural phenomena" (1560s) is now obsolete except in natural history (as late as the 1880s published county histories in the U.S. routinely included natural history chapters, with lists of birds and fishes and illustrations of local slugs and freshwater clams). Meaning "an eventful career, a past worthy of note" (a woman with a history) is from 1852. To make history "be notably engaged in public events" is from 1862.

History is the interpretation of the significance that the past has for us. [Johan Huizinga, "The Task of the Cultural Historian"]

History is more or less bunk [Henry Ford, Chicago Tribune, May 25, 1916]

One difference between history and imaginative literature ... is that history neither anticipates nor satisfies our curiosity, whereas literature does. [Guy Davenport, "Wheel Ruts," 1996]

"incredible or extravagant narration," by 1819, U.S. colloquial, from the tendency to exaggerate the size of the catch (or the one that got away). See fish (n. ) + story (n.1).

Do not tell fish stories where the people know you; but particularly, don't tell them where they know the fish. ["Mark Twain," in "More Maxims of Mark" by Merle Johnson (1927)]