The genus has a cosmopolitan distribution, although most species occur in temperate and tropical regions of the Southern Hemisphere.

In 2011, Jørgensen and Galloway had proposed to split Pseudocyphellaria into two genera, with the large clade containing the type species P. crocata to retain the original genus name.

The photobiont partner is green algae (possibly from the genus Dictyochloropsis),[7] while cyanobacteria occur in internal cephalodia.

[7] Capronia harrisiana is a lichenicolous fungus that has been recorded growing on Crocodia aurata in southeastern North America.

[8] Other lichenicolous fungi growing on members of Crocodia include Homostegia pelvetii, Abrothallus parmeliarum, Arthonia epiphyscia, A. fuscorubella, A. pelveti, A. stictaria, Lichenoconium plectocarpoides, Nectria heterospora and Scutula epiblastemica.