It is known from the island of Cyprus, where it grows in coastal dunes and salt marshes under the Phoenicean juniper (Juniperus phoenicea), but has also been documented in Malta and England following collections from diverse habitats.

The stipe surface is composed of brown hyphae with short, slightly clavate terminal elements 4–6 μm wide.

[1][2] A very similar species to Geoglossum dunense is G. heuflerianum, originally collected from Nockspitze mountain, south-east of Innsbruck, Austria.

[5][6] On Cyprus and Malta, Geoglossum dunense grows on coastal dunes and salt marshes among Juniperus, Olea and Fumana shrubs.

[1][2] A 2019 British report of this species from grasslands in Hardcastle Crags (West Yorkshire), however, suggests that its ecology and distribution might be wider than previously thought.