The bay is an extension of the Camotes Sea.

The city of Ormoc lies at the head of the bay and exports rice, copra and sugar.

The World War II Battle of Ormoc Bay took place from November 11 until mid-December in Ormoc Bay during late 1944.

It consisted of a series of almost daily destroyer skirmishes and air battles.

It was decisive in determining the final outcome of the Battle of Leyte.