Protestors say quarrying on the 234-acre green belt site stretching from Fairfield to the A63 would bring dust, dirt and traffic congestion to residents who thought the diversion of the A1 in April would at last bring peace to the village.
Fairburn Parish Council chairman Brian Harris wants people to unite against Lafarge Aggregates' proposal for the limestone quarry.
He said: "This has come as a tremendous shock to Fairburn residents who thought they could at last live in peace.
"We put up with the A1 for more than 40 years and thought its diversion earlier this year was a new start. Now we will have to deal with dust, dirt and trucks coming and going from this quarry.
"Although this proposal is still in its early stages, the people of Fairburn must prepare a strong response. We have to be ready and organised to fight these plans."
The parish council is planning to set up an action group to fight the development.
Lafarge has contacted North Yorkshire County Council to register its interest in developing up to 232 acres of green belt land behind houses in Fairfield, stretching up to the A63. The quarry is expected to yield around seven million tonnes of limestone.
Charles Winn, who has lived in Fairfield for 40 years, said: "I am disgusted that they want to build something like this so near to our houses. We'll fight it all the way."
Selby MP John Grogan said: "This proposal has come like a bolt out of the blue for the people of Fairburn.
The re-routing of the A1 has just brought peace and quiet back to the village which has for many years been split by a busy dual carriageway.
"If Lafarge decides to take the proposals off the drawing board and put in a formal planning application it will face intense local opposition."
Chris Jarvis, minerals waste and policy officer for North Yorkshire County Council said: "The council is at the early stages of its mineral development plans and will be assessing four sites - including the one in Fairburn - that have been submitted for consideration.
"This will be followed by public consultation in the spring. Planning permission would be needed before work could begin."
Lafarge was unavailable for comment.