The town lies in an area of limestone; erosion of this has led to the surrounding land being riddled with caves.

The timber and dairy industries are prominent parts of Caveside's rural history and it was known in the early 20th century for the quality of its cattle and sheep studs.

[4] Henry Reed became a significant figure in the early history of Caveside, after he took up a large land allotment in 1835.

Reed conducted some early Wesleyan services in his home on the property known as Wesley Dale.

[4] The first official Wesleyan services began c.1875 in a private home[5] that was sited in a paddock, near the bridge over Lobster creek.

[10] The shop has long closed but the Caveside memorial hall remains open and is operated by the Meander Valley Council.

[13] Lobster Rivulet, a tributary of the Mersey River, flows through the locality from south to north.

Route C168 (Western Creek Road) starts at an intersection with C169 and runs south-east until it exits.