It is named after Lake Hayq, which lies two kilometers east of the city and is the home of Istifanos Monastery, an important landmark in Ethiopian Church history.

Located 28 kilometers north of Dessie in the Tehuledere woreda of the Debub Wollo Zone of the Amhara Region, the town has a latitude and longitude of 11°18′N 39°41′E / 11.300°N 39.683°E / 11.300; 39.683 and an elevation of 2,030 metres (6,660 ft) above sea level.

Near the town is the church of Hayq Tekle Haymanot, founded according to tradition in 862 by Saint Kalae Salama during the reign of king Dil Na'od.

In the late 1930s, the Italian occupiers dedicated a graveyard near Hayq for the bodies of dead soldiers from the Blackshirt 3 Gennaio Division.

Construction of a youth center, which includes amenities as a gymnasium, internet service room, assembly hall, a café, and office space, was underway in March 2009.