Ithaca is a village in Saunders County, Nebraska, United States. The population was 160 at the 2020 census. Ithaca was founded in 1866. It was named after Ithaca, New York, the native home of a pioneer settler. The earliest extant appearance of the name Ithaca, however, comes from Homer's Odyssey as the name of the mythical island-kingdom the titu…Ithaca is a village in Saunders County, Nebraska, United States. The population was 160 at the 2020 census. Ithaca was founded in 1866. It was named after Ithaca, New York, the native home of a pioneer settler. The earliest extant appearance of the name Ithaca, however, comes from Homer's Odyssey as the name of the mythical island-kingdom the titular character Odysseus is from.