With the end of World War II came a residential building boom in the South Deering community. The area's population nearly doubled between 1940 and 1950. To ensure recreational opportunities for residents, the City of Chicago acquired a parcel of land from real estate subdividers in 1946, improving it as a playground. In 1959, the city turned the park over to the Chicago Park District. Luella Park takes its name from the street that runs along its western edge. The Luella was the first passenger steamer to ply the Mississippi River. Built in 1844 by George Springer (1815-1899) of St. Louis, the Luella was the only means of crossing between St. Louis and the higher eastern shore of the river during the great flood of that year. Springer sold the vessel in 1848 and moved to Chicago to speculate in real estate. Springer found further success; it was Springer himself who named the street, which ran through one of his new subdivisions.

Located in the Jeffery Manor/South Deering community, Luella Park totals 1.44 acres and it is a recreational destination enjoyed by park patrons and their families.This park contains a soft-surface playground and basketball courts. Activities that are played at Luella Park include open basketball and basketball tournaments.