Cody is located at the western edge of the Bighorn Basin, a depression surrounded by the Big Horn, Owl Creek, Bridger, and Absaroka ranges.

At the western edge of Cody, a deep canyon formed by the Shoshone River provides the only passage to Yellowstone's Eastern Entrance.

Much of Cody has views of Heart Mountain, whose 8,123 ft (2,500 m) peak is 9 miles (14 km) directly north of Cody, and the Carter Mountain massif, which forms a line with peaks above 12,000 ft (3,700 m), some 15 miles (24 km) to the south.

Cody experiences a cold semi-arid climate (Köppen BSk), with highly variable conditions.

Due to the aridity, snow cover is highly unreliable, with 29.4 days per season with 1 inch or 0.025 metres or more on the ground.

Cody enjoys about 300 days of sunshine per year, and is in USDA plant hardiness zone 5a (-20 to -15 °F/-28.9 to -26.1 °C).

Air flow in Cody area is turbulent, but during the winter most storms move in from the north-northwest.

Throughout a normal day, winds can be experienced as coming from almost any direction, mostly from the north and west, but sometimes from the south and east.

Because of the dry climate, the entire area is laced with irrigation canals, holding ponds, laterals, and drops.

The Buffalo Bill Dam between Rattlesnake and Cedar mountains forms a large reservoir about 10 miles (16 km) to the west of Cody.

This reservoir (among others) feeds the Shoshone Project, a large irrigation water distribution system.

[9] Themes surrounding Cody's pioneer and Cowboy and Western history are common in the cultural events and activities in the area.

Old Trail Town, a restoration of more than 25 historic Western buildings and artifacts, is located in Cody just off the Yellowstone Highway.

The Interpretive Center is approximately 17 miles east of town and includes surviving buildings from the camp, a war memorial, a walking trail, and a world-class museum.

Many photographers, painters, sculptors, designers, and artists love to capture the surrounding natural wonder and western aesthetics.

Rendezvous Royale features the art show sale, lectures, workshops, and a patrons ball.

The annual performing arts events in Cody are produced from The Rocky Mountain Dance Theatre.

They have been doing The Nutcracker annually in December for 25 years,[24] and The Wild West Spectacular Musical for seven seasons.

[25] Public education in the city of Cody is provided by Park County School District #6.

[26] Three elementary schools – Eastside, Glenn Livingston, and Sunset - serve students in grades kindergarten through five.

Hotels, restaurants and shops cater to travelers coming to visit the West and Yellowstone Park.

Cody has several art galleries, with some notable local painters and artists living in the area.

The Shoshone River runs through town, offering class I-V kayaking and whitewater rafting.

Shoshone Canyon offers over 300 rock climbing routes, while Cedar Mountain boasts nearly 600 boulder problems.

Cody hosts nearly 50 miles of single track, with a large amount of it accessible by bike from town.

A bike park was recently completed with jump and drop lines as well as a pump track.

Husky Energy was founded in Cody in 1938 (as Husky Refining Company), when Glenn Nielson purchased the assets of Park Refining Company, started four years earlier by area oil developer Valentine M. Kirk.

Persons born in Cody or with notable connections include: ^20 "Kanye, Out West: What is the Superstar doing out in Wyoming?"