Environmental studies have revealed the lake has been uniquely stable for thousands of years.

[2] Blue Lake was the focus for research on environmental change in which numerous indicators such as water discharge, water quality, pollen and algae samples were examined to understand the history of the lake.

Although only relatively small, Blue Lake contains a diversity of habitats & species, including: Blue Lake, a boomerang-shaped watertable window lake; Tortoise Lagoon, a perched lake receding to swamp that fluctuates between swamp and a lagoon depending on rainfall; and other swamps; examples of dry sclerophyll forest, scrub heath, marshes, herbfields, associated linear swamps with surrounding eucalypt open forest and mallee heath.

The eastern tip of Blue Lake lies 1.75km from the ocean at which point a white-sandy bottomed, fast flowing creek with steep fern covered banks, carries the Blue Lake overflow down to Eighteen Mile Swamp.

Most of the littoral and planktonic insects found in Blue Lake are common and widespread throughout Australia.