It was created to protect its scenic landscape and the Valdivian flora to augment that of the nearby Los Alerces National Park.

The protected area is named after the Puelo Lake, and belongs to the Patagonic forest and steppes and High Andes eco-regions.

The rivers of the region have high levels of glacier sediment (silt), which gives Puelo Lake its blue color.

[1] Some of the flora of the park belongs to the Valdivian rain forests (avellano, tique, lingue, ulmo).

The lake features native fish such as the perca, the peladilla and the puyén grande, and foreign species of trout.