The bay is shallow with an average depth of about 20 metres (66 ft) and a shoreline of about 50 kilometres (31 mi).

[1] In the greater part of the bay, the bottom consists of sand and clay, with depths of 14.5 to 18 metres (48 to 59 ft).

But a wide strip of rocky bottom, with depths of 12 to 18 metres (39 to 59 ft), extends south-southwestward from the northeastern part of the bay to Hovs Hallar.

The bay, on the other hand, is named after the Town of Laholm, located about 5 kilometres (3.1 mi) inland.

The cause of the environmental issues is thought to be too much nutrients (mainly nitrogen from agriculture, forests, and rivers) in relation to the shallow water depth.