The reservoir was formed in 1969 by the construction of a dam to provide a cooling pond for a series of power plants, called the Calaveras Power Station, to supply additional electricity to the city of San Antonio.

Calaveras Lake also serves as a venue for recreation, including fishing and boating.

Thousand Trails Management Services operates the 147 acre (57 ha) public facility under contract with CPS Energy at the lake.

The lake features facilities for camping, picnicking, fishing, boating, and hiking.

Calaveras Lake is the setting of one of the culminating scenes in the 1996 film Courage Under Fire, during which Matt Damon's character reveals his knowledge of the truth regarding the death of the character of Captain Karen Walden, the investigation of which constitutes the subject of the film up to that point.