Old English þær "in or at that place, so far as, provided that, in that respect," from Proto-Germanic *thær (source also of Old Saxon thar, Old Frisian ther, Middle Low German dar, Middle Dutch daer, Dutch daar, Old High German dar, German da, Gothic þar, Old Norse þar), from PIE *tar- "there" (source also of Sanskrit tar-hi "then"), from root *to- (see the) + adverbial suffix -r.
Interjectional use is recorded from 1530s, used variously to emphasize certainty, encouragement, or consolation. To have been there "had previous experience of some activity" is recorded from 1877.