It is a glacial lake surrounded by hills and is the source of Harveys Creek, a tributary of the Susquehanna River.

However, the lake began to develop significant environmental problems in the 1960s and a total maximum daily load was created for it in 1994.

[2][4] The lake's major inflows include two unnamed streams with widths between 4 and 8 feet (1.2 and 2.4 m) and depths of 6 inches (15 cm).

[9] The vast majority (2,841 acres [1,150 ha]) of the watershed of Harveys Lake is forested land.

[3] The majority of the developed land in the watershed is directly on the shoreline and nearly all is within 0.5 miles (0.80 km) of the lake.

The development had steep slopes (8 to 18 percent grade), unpaved roads, and no infrastructure for dealing with stormwater.

However, a nutrient-separating baffle box and a water polishing unit were installed in the development, reducing the phosphorus load of Harveys Lake by an estimated 36 pounds (16 kg) per year.

[11] A ditch and outlet drainage structure made of concrete at Wardens Place drains into the lake; its purpose is to control small-scale local road flooding.

[3][7] Algae blooms occurred on the lake and caused a reduction in water quality throughout the latter half of the 20th century.

A sewage system was installed in the borough of Harveys Lake in the summer of 1976, but this did not completely stop the algae blooms.

The lake's total maximum daily load for phosphorus is 0.024 milligrams per liter and 789 pounds (358 kg) per year.

[3] The lake causes substantially reduced peak flood flows on Harveys Creek.

Harvey inadvertently discovered the lake in 1781, while returning home after being held as a prisoner of war in Fort Niagara.

[7] The early settlers in the vicinity of Harveys Lake mainly engaged in lumbering and farming, which was a common occupation.

[8] At one point during the 1800s, the mills of Hollenback & Urquhart were cutting more than a million board feet of lumber annually at the lake.

[8][13] In the early 1900s, there were three hotels, two hundred cottages, and sixty boathouses on the lake, most of them at least 15 feet (4.6 m) above the water line.

[5] The Harvey Lake and Towanda Branch of the Lehigh Valley Railroad was constructed in the late 1800s.

[13] Throughout the 20th century, prior to and after World War II, the lake attracted thousands of visitors yearly.

[9] In modern times, the main recreational uses of Harveys Lake include swimming, fishing, and boating.

[11] Numerous rare or endangered plant species have been observed in the vicinity of Harveys Lake.

However, exotic and invasive plants such as fanwort and aquatic coontail also inhabit the area and have altered the habitat in the vicinity of the lake.

[5] Algae blooms have occurred on Harveys Lake due to high levels of nutrients in the water.

[9] Harveys Lake has regulations permitting a creel limit of three trout per day, with only one being allowed to be more than 18 inches (46 cm) long.

Franklin's gulls have also been observed near the lake, as have snow buntings and black-legged kittiwakes, and ruddy ducks.