Banksia lanata is a spreading shrub that typically grows to a height of 1 m (3 ft 3 in) with hairy stems but that does not form a lignotuber.

[2][3][4] Banksia lanata was first formally described in 1981 by Alex George in the journal Nuytsia from specimens he collected east of Eneabba in 1971.

[4][5] The specific epithet (lanata) is a Latin word meaning "woolly", referring to the hairs on the bracts.

[4] This banksia is restricted to an area between Arrowsmith Lake, Coomallo Creek and Tathra National Park in the Geraldton Sandplains biogeographic region where it is relatively common.

[2][3][4] Banksia lanata is classified as "not threatened" by the Western Australian Government Department of Parks and Wildlife.