Bakota Bay is located near the villages of Horayivka and Kolodiyivka, 50 km (31 mi) southeast from Kamianets-Podilskyi.

Located in a river canyon, the ecological environment is typical of that of the upper Dniester basin.

The bay plays an important role in the conservation of a number of rare species of Ukrainian plants and animals, as well as the spawning of fish.

Birds include both predatory (Eurasian goshawk; Eurasian sparrowhawk; Common buzzard; Short-toed snake eagle; Common kestrel) and migratory (Mallard; Mute swan; Great egret; Little egret; Wood sandpiper; Northern lapwing) species, among others.

The geology of the bay is characterized by limestone, marl, sandstone, and shale, as well as granite and gneiss that are overlaid with loess.