Located almost entirely in Kent County, it is part of the Dover, Delaware Metropolitan Statistical Area.

[3] Byrd's AME Church, the Clayton Railroad Station, Enoch Jones House, and St. Joseph's Industrial School are listed on the National Register of Historic Places.

[5] According to the United States Census Bureau, the town has a total area of 1.0 square mile (2.6 km2), all land.

It was named after John Middleton Clayton, a prominent 19th-century Delaware lawyer and politician.

Delaware Route 15 passes through the western part of Clayton, following DE 6 from the west before heading north on Duck Creek Road toward Middletown.

[10] The department provides water to 1,100 customers in the town, with four underwater wells and two elevated storage tanks.

[11] The public works department serves 1,100 sewer customers in Clayton, operating eight pumping stations and contracting with Kent County for wastewater treatment.