The lake is elongated, orientated southwest to northeast, and lies in the Eyasi-Wembere branch of the Great Rift Valley.

The southwest flank of Mount Oldeani, one of the Ngorongoro volcanos, drains directly into the northeast end of the lake.

Flow from the Budahaya / Udahaya River, which drains into the Yaeda Swamp to the southeast of the lake, was once second, but has decreased due to water diversion in the Mbulu Highlands.

Seasonal water level fluctuations in the lake are dramatic, though the northwestern shore is constrained by the cliffs of the Serengeti Plateau.

The Iraqw traditionally lived on the other side of Yaeda, but have come in increasing numbers to the Baray, which is now the primary onion-growing region of East Africa.