The lake's primary functions are to provide flood control, water storage, and recreational opportunities.

[3] The US Army Corps of Engineers established Kiamichi Park on the lake just west of the dam site in 1974.

The south 8,000 acres (32 km2) of the lake nearest to the dam are clear of obstructions and provide recreational opportunities for watersports such as boating and water skiing.

Hugo Lake features excellent crappie fishing and populations of bass and catfish.

The Oklahoma Department of Wildlife Conservation administers 18,000 acres (73 km2) at the lake, and the US Army Corps of Engineers manage 8,000.

The area has a combination waterborne shower and toilet building and swimming beach access.

[5] In recent years Hugo Lake has been in the middle of a controversy regarding out-of-state water sales between Texas and Oklahoma.