The village has a ferry connection to Lyngseidet, the administrative centre of Lyngen Municipality, across the fjord.

Olderdalen is located about 16.7 km (10.4 mi) to the northwest of the village of Birtavarre and it is about 70 km (43 mi) to the east of the city of Tromsø.

Raising sheep and dairy cattle are two of the most prominent types of agriculture in the area.

During World War II many of the houses and farms in Olderdalen fell victim of the German scorched earth tactics when they withdrew from Finland and Finnmark.

This led to much of the infrastructure and buildings in the village being destroyed to prevent the invading Soviet forces from obtaining supplies.