[6] The thallus of Lichenomphalia velutina is subtle and resembles the Botrydina type; it is made up of globules that can be either dispersed or clustered, ranging in diameter from 35 to 90 μm.

They are formed from clusters of single-celled green algae, known as Coccomyxa, surrounded by clear fungal threads (hyphae) which are 1–5 μm wide and do not have clamp connections.

[6] The basidiomata (fruiting body) of this species is mushroom-like, with a cap (pileus) that is 4–12 mm in diameter, varying in colour from grey-brown to dark brown.

It is smooth or somewhat fibrous and contains gills (lamellae) that are spaced apart, broad, and run down the stipe (decurrent), matching the cap in colour or slightly lighter.

[6] Chemically, Lichenomphalia velutina does not react to standard lichen spot tests, indicating the absence of certain secondary metabolites in both the thallus and the basidiomata.