The geographic distribution of the species is notably cosmopolitan; it is found in ecosystems with a wide range of environmental conditions, and in many cases in high relative frequency.

[4] Molecular analyses have revealed that C. geophilum is not closely related to other Ascomycete ectomycorrhizal fungi (mostly in the Pezizales) and is actually a member of the Dothideomycetes.

[2] It is not unusual to find Cenococcum geophilum mycelium and ectomycorrhizas in high relative frequency in soil where ectomycorrhizal tree hosts are present.

[11] This unusual distributional pattern may be the result of wide niche breadth of Cenococcum geophilum and/or genetic variation within the species.

Along with other species of ectomycorrhizal fungi, C. geophilum produces extracellular enzymes that are able to hydrolyze substrates found in the soil to access and acquire nutrients important to itself and its host plant.

The ectomycorrhizas of C. geophilum have been shown to hydrolyze 14C labeled substrate common in plant litters, including hemicellulose and cellulose.

[25] Cenococcum geophilum ectomycorrhizas have also been shown to produce high levels of laccase, glucoronidase, and xylodase and phosphatase enzymes.

There is considerable evidence suggesting that C. geophilum mycelium, ectomycorrhizas and sclerotia are highly resistant to decay and have potential to sequester a great deal of carbon in their tissues.

Advances in molecular techniques have allowed researchers to test this hypothesis by examining the genetic variation in C. geophilum strains at various spatial scales.

[31][32] Douhan & Rizzo (2005) found phylogenetically distinct lineages of C. geophilum at the scale of the soil sample supporting the hypothesis that there is cryptic sympatric speciation occurring in C.