Originally known as Miami, the suburb was renamed after Falcon Bay on 13 November 1967.

Falcon is one of four Mandurah suburbs that lie on an island bound by the Mandurah Estuary to the north, the Peel-Harvey Estuary to the east, the Dawesville Channel to the south and the Indian Ocean to the west.

It is also bisected by Old Coast Road, which connects Falcon to nearby Mandurah and Bunbury.

[3] Falcon, like neighbouring suburbs Wannanup and Dawesville, is serviced by Transperth routes 592, 593 and 594.

592 runs six days a week through Falcon via Galatea and Yeedong Roads while 593 and 594 goes straight through the suburb via Old Coast Road, but runs 7 days a week.