It is typically found growing on the lichen species Candelina submexicana, and while not widespread, it contributes to the ecological diversity of the regions it inhabits.

The type specimen was found by Thomas Hawkes Nash III in 1975 in a canyon above the mining town of Trinidad, located in Sonora, Mexico, at an elevation of 4,060 ft (1,240 m).

Its ascospores, the sexual spores within the asci, are more or less citriform (lemon-shaped) with pointed ends, and have typical dimensions of 11.5–14.0 by 4.5–5.0 μm.

[2] Candelariella lichenicola appears to exclusively grow on Candelina submexicana, a species of lichen that prefers siliceous rocks found in southwestern North America's interior desert and at high altitudes.

The lichenicolous fungus does not seem to inflict any damage on the host lichen, with no noticeable discolouration or other visible effects on the thallus.