Nazareth was a small and insignificant village during the period of Jesus.
While the site was settled during the period 600-900 BC, it was too small to be included in the list of settlements of the tribe of Zebulon (Joshua 19:10-16), which mentions twelve towns and six villages.
Nazareth is not included among the 45 cities of the Galilee that were mentioned by Joseph's, and It's name is missing from the 63 towns in Galilee mentioned in the Talmud.
It seems that the words of Nathanel of Cana, "Can anything good come out of Nazareth?" (John 1:47) characterized the site's seeming insignificance.
 

It is needless to say that the people of Judea had never heard of Nazareth - from this we understand the reason that Pontius Pilate decorates the cross with the sign "Jesus of Nazareth, King of the Jews" (John 19:19) - meaning that the "King of the Jews" is from "nowhere." 

The early name "Nazarenes" given to the Christians might have been a derogatory nickname that the people of Judea gave to the followers of Jesus (Matthew 26:71, Acts 6:38).
Jesus was known throughout the Galilee as "Jesus of Nazareth" (Matthew 21:1 1, Mark 14:67) - but for those not from the Galilee, this name had no meaning for them.
In order to explain where Nazareth was located, the Galileans had to explain that the village was near Gat-Hyefer (Jonah's hometown, Kings 11 14:25), which could be seen from Nazareth. 

Archaeological excavations conducted in Nazareth (by Bagati since 1955) show that Nazareth was a small agricultural village settled by a few dozen families.
The pottery remains testify to a continuous settlement during the period 600-900 BC. After those years, there was a break in settlement until the year 200 BC. Since then, the site of Nazareth has been consistently inhabited.
Most of the archaeological finds consist of caves, cisterns and grain storage bins.
The agricultural character of the site is made obvious with the discoveries of oil mills and mill stones - There were a large number of underground rooms because the soft chalk of Nazareth made it easy to hew caves.