Penola, Virginia  Penola is an unincorporated community in Caroline County, in the U.S. state of Virginia. A post office called Penola was established in 1857, and remained in operation until it was discontinued in 1961. Penola is a name derived from a Native American language meaning "cotton". It was a stop on the Richmond, Fredericksburg and Potomac Railroad in the nineteenth Century which was replaced by, CSXT.