Oberonia rimachila is an epiphytic or lithophytic, clump forming herb with between five and seven fleshy, sword-shaped, green to reddish leaves 50–70 mm (2.0–2.8 in) long and 5–8 mm (0.20–0.31 in) wide with their bases overlapping.

[2][3][4] Oberonia rimachila was first formally described in 2006 by David Jones and Mark Clements who published the description in Australian Orchid Research.

The type specimen was collected from Mount Tozer in the Iron Range National Park.

[5] The specific epithet (rimachila) is derived from the Latin word rima meaning "cleft" or "fissure"[6]: 164  and the Ancient Greek word cheilos meaning "lip" or "rim",[6]: 486  referring to the shape of the pit on the labellum.

[4] The channelled fairy orchid usually grows on trees and rocks in rainforest, sometimes in other humid, sheltered places such as mangroves and coastal scrub.