The park's bedrock is limestone laid down 500 million years ago as organic sediments settled to the bottom of a shallow sea that covered much of the Midwest.

In historical times, Rice Lake may have been as much as 55 feet (17 m) deep, but has filled in considerably due to human influence and the process of eutrophication.

Whistling swans, Canada and snow geese, diving ducks, western and pied-billed grebes, and black terns are frequent visitors.

However this is not representative of the area's pre-settlement vegetation, which would have been oak savanna with somewhat denser tree growth on the east side of the lake.

The one surviving structure from the village of Rice Lake is a Methodist church built in 1857, which still stands in the northeast corner of the state park.

Most of the water control structures remained in place, however, limiting outflow and resulting in eutrophication from accumulated agricultural runoff.

In 1961, the newspaper editor in Claremont, Dana Hinckley, sparked strong local interest in creating a state park around Rice Lake.

Several owners were reluctant to sell, but by 1967 recreational facilities had been installed in the north central part of the park, mostly on the former Izaak Walton League property.