The host species is a mycorrhizal fungi that usually grows with pine, spruce, beech, willow or birch.

The host species is found from a variety of habitats, such as deciduous and coniferous forests, sand dunes, parks and gardens.

[2][5] A significant part of observations have been recorded from human-modified areas, such as in the edges of public paths and lawns.

It is unclear how this is possible, as the fungus is known to be parasitic only on spores and not on underground fungal mycelium.

[7][8] D. odoratum is a parasitic fungus that transforms its host's sporocarp into ochre-colored, tuber-like deformity where the original cap and foot have atrophied.

The deformation, consisting of the host's swollen trama and the filaments of the parasitic fungus is no longer recognized as a veiled hebeloma, but it may still smell and taste like radish.

[2][9] Among the parasitic fungi of its family, the D. odoratum is the only one whose host species is known to belong to the genus Hebeloma.

The species was first considered endemic, but in 1948 it was found in Denmark and later from other European countries.

[12] By 2016 the fungi was also found from Belgium, Great Britain, Italy, Norway, Poland, France, Sweden, Germany, Finland and Switzerland.

[3] The International Union for Conservation of Nature (IUCN) has not assessed the endangerment of the species.