Mountain Lake typically covers about 50 acres (200,000 m2), and its level was largely constant at an elevation of 3,875 feet (1,181 m) during the 19th and 20th centuries.

[2] Natural lakes are common well to the north, where the Appalachian Range was subject to geologically recent glacial activity.

During dry periods, accumulated sediment is believed to move through a natural plumbing system consisting of the aforementioned openings in the lake bottom.

The lake drains into Little Stoney Creek, which passes over a spectacular waterfall known as The Cascades before reaching the New River.

During a severe cold wave in January 1985, Mountain Lake set the statewide record low for Virginia: −30 °F (−34 °C).

[8] Salt Pond had been frequented throughout the early part of the 19th century and prior, then in March 1856, Henley Chapman incorporated the Mountain Lake Co. to provide accommodations and entertainment for its visitors.

During their first year of ownership, though not operating publicly, the Haupts received compensation from some of their guests for the accommodations provided, prompting Giles County to require them to purchase a hotel license.

During Gilbert Porterfield's tenure managing the resort, its current reputation for fine cuisine was established.

In 1938, Moody replaced the wooden hotel with the current structure, built using stone native to the surrounding land.

In October 2008, the lake receded to a pond status, and remained mostly or completely dry until refilling in 2020.

[13] Mountain Lake Hotel was the site for much of the on-location filming of the 1987 hit movie Dirty Dancing which starred Patrick Swayze and Jennifer Grey.

In addition to the Mountain Lake Hotel resort complex, the Mountain Lake Biological Station (MLBS), a field research and teaching station of the Biology Department at the University of Virginia originally established in 1930 is located nearby.

Since 2008, the Conservancy has begun to manage and develop recreational opportunities for hotel guests and the local community.