It opens to the sea in the northwest and is largely surrounded by the lagoon of Narta in the north, the city of Vlorë in the northeast, the mountains of the Ceraunians in the east and southeast, and the peninsula of Karaburun in the southwest and west.

[1][2] The Karaburun Peninsula, which stretches at the meetingpoint of the Adriatic and Ionian Sea, encompasses the western shoreline of the bay that is highly hilly and irregular in structure and is home to the Karaburun-Sazan Marine Park.

[4][6][5] The coastal area of the Bay was settled by Ancient Greek colonists, who traditionally founded Oricum, Thronion and Aulon.

It has been suggested that Julius Caesar landed inside the Bay of Vlorë from Brundusium across the Adriatic, in order to carry on the Civil War against Pompey in Illyricum and the oncoming Battle of Dyrrhachium on 10 July 48 BC.

Studying the Bay of Vlorë, it has been one of the main projects of the navigation department of the University of Vlora in the last few years.