For statistical purposes, the United States Census Bureau has defined Avila Beach as a census-designated place (CDP).

[4][6] The town was established in the latter half of the 19th century, when it served as the main shipping port for San Luis Obispo.

Around this time, Luigi Marre built a honeymoon hotel here and steamboats brought customers from San Francisco and Los Angeles.

[7] Although Avila Beach still has a working commercial fishing pier and the inland areas have extensive apple orchards, tourism is now the main industry.

There are few historical structures remaining; among the oldest is the Point San Luis Lighthouse, built in 1890 after a series of shipping accidents.

[9] Over 6,750 truckloads of contaminated material was sent to a Bakersfield landfill, and replaced with clean Guadalupe Dunes sand.

[10] Many of the town's homes and businesses, including several blocks of Front Street, were razed as a result of the quarter-mile-wide excavation.

According to the United States Census Bureau, the CDP covers an area of 6.0 square miles (15.6 km2), 99.71% of it land, and 0.29% of it water.

Avila Beach faces south and the 600 foot elevation of Point San Luis breaks the prevailing northwesterly winds.

The Bob Jones trail connects the Avila Beach Golf Resort on the west to a trailhead on the east near Highway 101.

The trail's starting point is near the corner of Diablo Canyon Road and Avila Beach Drive.

Along with much of the California coast, winter is the wet season, with more than 70% of the yearly rain falling from December through March, while summer brings drought conditions.

[38] Avila Beach was the primary shooting location for the 1979 film California Dreaming, which starred Dennis Christopher, Glynnis O'Connor, and Seymour Cassel.