The unincorporated community of Peyla is located within Vermilion Lake Township.

The Pike River flows through Vermilion Lake Township.

Angus Road (Saint Louis County Road 77) briefly enters the north–central part of the township, near its intersection with Highways 1 and 169 at Peyla, near Fortune Bay.

The racial makeup of the township was 99.08% White, 0.31% Native American, and 0.61% from two or more races.

42.6% were of Finnish, 11.5% German, 7.4% Norwegian, 6.4% English, 6.1% Irish and 5.4% Swedish ancestry according to Census 2000.

20.3% of all households were made up of individuals, and 6.8% had someone living alone who was 65 years of age or older.

None of the families and 2.4% of the population were living below the poverty line, including no under eighteens and 2.9% of those over 64.