The surroundings of the lake as a whole and particularly the banks of its Dalyan sea connection are important nature reserves and popular tourist attractions.

[1] The lake was formed about 7500 years ago, when the entire eastern part of the Mediterranean was afflicted by earthquakes.

On the south side of Köyceğiz Lake, there is a NW - SE fault line, bordered by several sulfurous hot springs, amongst them Sultaniye Spa.

On the banks north of Sultaniye, northwest of Hamitköy, at Köyceğiz, at Kavakarası and at Tepearası, there are still vast marshy forests with the endemic Oriental Gumtree.

[2] Among the fish species in the lake are two endemic dwarf gobies, Knipowitschia byblisia and K. caunosi, which were only described to science in 2011.