L. umbellifera forms a symbiotic relationship with unicellular algae in the genus Coccomyxa.
[5] The mushroom is white to yellowish-tan and hygrophanous, and occurs throughout most of the year on damp soil and rotting wood.
[6] In the Pacific Northwest, it is common and can be found northward from Santa Cruz.
[9] L. umbellifera has a wide geographic range and displays a considerable amount of phenotypic plasticity, but phylogenetic research has confirmed that these populations represent a single species.
[4] Similar species include Chromosera cyanophylla, Chrysomphalina aurantiaca, Chrysomphalina chrysophylla, Contumyces rosellus, and Rickenella fibula.