Found throughout eastern and Midwest North America as well as in Malaysia, the fruit bodies typically grow in clusters on branches and exposed portions of buried wood.

Although generally considered inedible by North American mushroom field guides, the species is commonly consumed in Malaysia.

The species was originally named Bulgaria rufa in 1832 by Lewis David de Schweinitz, based on material collected from Bethlehem, Pennsylvania.

magna grew among fallen leaves under balsam fir trees, or among mosses on the ground, not on buried wood; it lacked a stem, and was instead broad and rounded underneath; its hymenium was more yellow-brown then the nominate variety; and, its spore were slightly longer.

The exterior surface is blackish-brown, and covered with hairs that measure 7–8 μm long that give it a felt-like or hairy texture.

[14] The similar species Galiella amurense is found in north temperate Asia, where it grows on the rotting wood of Spruce trees; it has larger ascospores than G. rufa, typically 26–41 by 13–16 μm.

[10] Galiella rufa produces several structurally related hexaketide compounds that have attracted attention for their biological properties, e.g. pregaliellalactone and galiellalactone.

IL-6 is a multifunctional cytokine which is produced by a large variety of cells and functions as a regulator of immune response, acute phase reactions, and hematopoiesis.

Researchers are interested in the potential of small-molecule inhibitors (such as the ones produced by G. rufa) to interfere with the IL-6 signaling cascade that leads to the expression of genes involved in disease.