With an elevation of 292 meters above sea level it ranks as the highest situated town in the nation.

During the so-called Mývatn fires, caused by the eruption of the nearby volcano Krafla in 1729, the village was destroyed by a lava stream.

Not far from there is the crater Víti (meaning "hell" in Icelandic), but looking today rather harmless with a blue lake at its bottom.

Other interesting places are on the lake itself, like the volcano Hverfjall, the pseudo-craters of Skútusstaðir [ˈskuːtʏsˌstaːðɪr̥] and Dimmuborgir (a strange lava formation).

A plant for extraction and processing of diatomite was a main point in local economy until 2004 when it was shut down.