It lies near the foothills of the Western Ghats, Karkala has a number of natural and historical landmarks, and is a major tourist and transit destination due to its strategic location along the way to Hebri, Sringeri, Kalasa, Horanadu, Udupi, Kollur, Subrahmanya and Dharmasthala.

There is still a place called as Kariya Kall in the city which means 'Black Rock' in Tulu and Kannada languages.

However, some studies assert that the original name was 'Kari Kola' meaning 'elephant lake' in Tulu and Kannada languages, which today is known as 'Anekere'.

The current official name "Karkala" is in use since the times of the British, while it is still referred to as "Karla" by the local Tulu population.

The town attained political and cultural importance from the time of the Kalasa-Karkala kingdom that was established by King Bhairava between 13th and 16th centuries.

During the Vijayanagara period this family reached new heights of glory as their kingdom extended over a wider area comprising Sringeri, Koppa, Balehonnur and Mudigere in Chikamagalur and most of the Karkala taluk.

His successor, Abinava Pandya installed a carving of manastambha in front of the Neminatha Basadis in Hiriyangadi in 1457 AD.

This Basadis has four identical entrances from the four directions leading to the Garbagriha and hence is popularly known as Chaturmukha or Four-Faced.

It has life size statues of three Jain Theerthankaras on each side and small images of 24 Tirthankara.

It has a large number of picturesque lakes, such as: Situated at the foothills of the Western Ghats, Karkala has an undulating landscape, dotted with black granite outcrops, while the western part of the town is predominantly coastal plains that stretch about 25 km west towards the Arabian Sea.

The tiger is considered as the mount of Goddess Durga, and the dance is performed during the Dasara and Krishna Janmashthami festivals.

The town is well connected to Udupi, Moodabidri and Padubidri, and to Sringeri and Kalasa on the Western Ghats.