It is south of Mount Hood and 8 km (5 mi) northeast of Timothy Lake, near the junction of U.S. Route 26 and Skyline Road at the latter's northern terminus. It is near the northwest corner of Wasco County. The Pacific Crest Trail is 4 km (2 mi) west of the lake.
It is fed by several small streams of the eastern Cascade crest. It is the headwaters of Clear Creek, a tributary of the White River, blocked at the east end by a small dam.
Clear Lake Butte is a butte south of the lake, and defines the northwest corner of Warm Springs Indian Reservation. The lake is known for abundant fish and its windy conditions. The banks are edged by tree stumps and free range cattle tracks. The campground has 28 established spots and an overflow area.