"Arnar" is the genitive case of "Örn" ([ˈœ(r)tn̥]), the name of the first settler of the fjord.
They are Borgarfjörður to the east and Suðurfirðir to the south.
The largest settlement on the fjord is the small village of Bíldudalur.
Lowland strips along the bay are very limited, with mountain slopes falling steeply into the sea in most places.
[1] The Westfjords' highest mountain, Kaldbakur, is also located between Arnarfjörður and the neighboring Dýrafjörður, a parallel fjord to the north-east.