Tor Bay is bounded by outcrops of Devonian limestone forming its northern limit at Hope's Nose and its southern at Berry Head.

The geology of the area is varied and complex, recognised by the 2007 designation of the English Riviera Geopark which includes all of Tor Bay's coastline.

[2] Because it is sheltered from the prevailing south-westerly winds, Tor Bay has long been one of the safest refuges for shipping between Land's End and the Isle of Wight.

[3] In the mid-17th century, the bay was occasionally used by the naval fleet as an anchorage and as a gathering place for convoys.

During the COVID-19 pandemic, restrictions on the cruise industry led to Tor Bay being used as a layup location to anchor numerous cruise ships including five Holland America vessels, as well as Tui ships Marella Explorer and Marella Explorer 2.