Set amongst dense forests of oak and pine trees, Sattal is one of the few unspoiled and unpolluted freshwater biomes in India.

Extensive deforestation, dumping of non-biodegradable waste, uncontrolled urbanization of the catchments and nearby forest is harming the ecology of the area.

This results in scanty rainfall, a decrease in the number of plant and animal species and rapid drying up of perennial springs.

An extensive growth of invasive plants such as Lantana, Parthenium and Eichhornia is also endangering the ecological survival of the lakes.

Some of the butterflies found at Sattal includes Indian Fritillary (Argynnis hyperbius), Peacock Pansy (Junonia almana), Blue Peacock (Papilio arcturus), Paris Peacock (Papilio paris), Red-base Jazebel (Delias pasithoe), Red lacewing (Cethosia biblis), Yellow Pansy (Junonia hierta), Tawny Rajah (Charaxes bernardus), Red Helen (Papilio helenus), Large silverstripe (Argynnis childreni), Indian oakleaf (Kallima inachus) and thousands of others.

The Atlas moth is one of the largest lepidopterans, with a wingspan measuring up to 24 cm (9.4 in) and a wing surface area of about 160 cm2 (~25 in2).

There is a natural spring of fresh water arising out of dense oak forest west of Sattal that leads to a waterfall beyond the Sukhatal also known as the Bharat tal.