Dhone is located at . It has an average elevation of 398 meters (1309 feet).
The former name of Dhone was Dronachalam. Dhone is one of the biggest municipality in Kurnool district. According to local tradition, the name of the village is derived from the name of the tutor Dronacharya, a character in Mahabharatha, who meditated on the hill in village. There is now a Hanumantemple, masjid and church on the hill.
Dhone has large deposits of high quality limestone. There was an active quarry, but it is no longer in operation.
There are two active political parties in Dhone, the Telugu Desam Party and Congress Party. The present MLA is K. E. Krishnamurthy who is the son of K.E. Madanna. The former MLA was Kotla Sujathamma who is a Congress leader.Rajasekhar was born in Dhone and migrated to Tirupati.Dhone railway is a biggest railway junction in single line BG Diesel traction section which connects all the major metropolitan cities except Mumbai.Its has a second biggest running room in indian railways.