We present the discovery and monitoring of the optical transient (OT) associated with GRB 020410. The fading OT was found by Hubble Space Telescope (HST) observations taken 28 and 65 days after burst at a position consistent with the X-ray afterglow. Subsequent re-examination of early ground based observations revealed that a faint OT was present 6 hours after burst, confirming the source association with GRB 020410. A deep non-detection after one week requires that the OT re-brightened between day 7 and day 28, and further late timeHST data taken approximately 100 days after burst imply that it is very red (F_nu proportional to nu-2.7). We compare both the flux and color of the excess with supernova models and show that the data are best explained by the presence of a Type I b/c supernova at a redshift z approx. equal 0.5, which occurred roughly coincident with the day of GRB.