It is entirely restricted to south-west Tasmania's Wilderness World Heritage Area where it occurs on white Precambrian quartzitic sand deposited by alluvial flows, and on margins of buttongrass (Gymnoschoenus sphaerocephalus) sedge land.

Species most commonly found in association with A. leucobryoides include: Leptocarpus tenax, Chordifex hookeri, and Actinotus suffocatus.

Currently, A. leucobryoides is listed as rare under the Tasmanian Threatened Species Protection Act 1995.

Mature plants are small, pale brown or whitish green when dry.

Spore capsules are whitish-yellow and globose, atop a seta (stalk) that is 1.2 cm long.