The town of Dryanovo is amphiteatrically situated along the two banks of the Dryanovska River, a right tributary to the Yantra River. It lies 22 km. from the city of Gabrovo with its ethnographical sites, 24 km. from the Medieval capital of Bulgaria- Veliko Turnovo, 17 km. from the town of Tryavna, famous for its architectural ensembles and 34 km. from the town of Sevlievo.

The settlement is mentioned as a fortress on the Strinava Plateau by Byzantine chroniclers in 1186 for the first time in relation to the Uprising led by the members of the Assen dynasty (1185 - 1187). It is mentioned under the name of Diranav (Diranava) in a Turkish register of 1430.