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Malone is located at 31°55′2″N 96°53′41″W (31.917325, -96.894724).
According to the United States Census Bureau, the town has a total area of 0.5 square miles (1.3 km²), all of it land.
As of the census of 2000, there were 278 people, 107 households, and 69 families residing in the town. The population density was 606.6 people per square mile (233.3/km²). There were 125 housing units at an average density of 272.7 per square mile (104.9/km²). The racial makeup of the town was 67.99% White, 19.42% African American, 0.72% Native American, 9.71% from other races, and 2.16% from two or more races. Hispanic or Latino of any race were 14.75% of the population.
There were 107 households out of which 36.4% had children under the age of 18 living with them, 43.0% were married couples living together, 14.0% had a female householder with no husband present, and 35.5% were non-families. 32.7% of all households were made up of individuals and 15.9% had someone living alone who was 65 years of age or older. The average household size was 2.60 and the average family size was 3.32.
The town is served by the Malone Independent School District. The district has one campus, Malone Elementary, which serves students in grades pre-kindergarten through eight.