The village probably arose in the 12th century. The place was first mentioned in writing in 1315. The owners were the von Feilitzsch families on Sachsgrün, von Neipperg and finally the von Zedtwitz family on Neuberg. Since 1537 a knight's seat of the Lords of Zedtwitz can be proven in Krugsreuth. After the Neuberger estates were divided, Krugsreuth was subject to the Obern rule from the middle of the 18th century.
After patrimonial rule was abolished, Krugsreuth formed a municipality in the district of Asch. The place was divided into the local locations Unterdorf, Mitteldorf and Juchhöh. In 1930 the workers' gymnastics club built an open-air swimming pool, which became known as the Red Sea. In 1939 the village had 868 inhabitants. After the Munich Agreement, the village fell to the German Reich and belonged to the district of Asch between 1938 and 1945. After the end of World War II, Kopaniny returned to Czechoslovakia in 1945. The German population was expelled in 1946, and because of its remote location near the border to the Soviet occupation zone, the village could only be resettled to a limited extent. In 1947 Kopaniny had only 297 inhabitants. At that time the swimming pool was also abandoned. The population decline continued. In 2001 only 94 people lived in the 51 houses in the village.