The village is said to have been named after two brothers, "Budha" and "Lada," who were khatri by caste. Once a part of the state of Kaithal, it was punitively annexed along with the rest of that territory after not helping the British during the insurgency of 1857. The village later merged with Karnal District, one of the largest markets in East Punjab. The area was said to be a good area for the recruitment of military personnel, second only to Rohtak. Hawaldar Joginder Singh Datewas, a soldier recruited from Budhlada, was notably awarded the Ashoka Chakra.