[2] The Nicola Valley is narrow and mountainous, generating substantial winds that have given the lake a good reputation among sailors and windsurfers.

Being roughly three hours from Vancouver and in a temperate climate that sees warm weather for much of the year (despite a severe high-country winter), Nicola Lake has become popular among those looking for recreation.

Monck Provincial Park is located on the shores of the lake, at a site used in centuries past as a First Nations village (depressions, known as quiggly holes, from the local type of indigenous pit house, are still evident).

Nicola Lake is a popular location for fishing as well, with rainbow trout and Kokanee the main species sought by fishermen.

Because of generally declining water levels in the Interior, the lake, controlled by the dam at its outflow, provides necessary flows through the summer for vulnerable coho salmon and other species downstream.