Moon Lake has wetlands and forested areas contiguous to provide valuable habitat for both fish and wildlife. Moon Lake is not only a picturesque retreat for people but also a vital habitat for wildlife, particularly loons.

Each year, a breeding pair of loons returns to Moon Lake, a testament to the lake’s healthy ecosystem and suitable nesting conditions. These loons usually manage to successfully raise at least one chick annually, delighting residents with their graceful presence. The consistency of their return and breeding success highlights the importance of preserving such natural habitats, ensuring that Moon Lake remains a sanctuary for these iconic birds and a place of natural beauty and biodiversity.

Moon Lake water quality has been designated as a Class C body of water by the New York State Department of Environmental Conservation, meaning that water quality should be maintained at a level suitable for fishing and for primary and secondary contact recreation.

Moon Lake is a shallow-water, eutrophic lake. Eutrophic lakes are characterized by high nutrient levels, an abundance of aquatic vegetation, and low water clarity due to algae growth. It is a natural condition occurring as a result of the lake's shallow depth and its mud bottom.