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The island borders the southwestern side of the Lighthouse Reef Atoll and is the dominant island in the Atoll. An atoll is a large lagoon with many coral reef formations around its perimeter. The islands in the Lighthouse Reef Atoll are land masses where the coral buildup is above or below sea level and plant life has taken root. Lighthouse Reef is one of only four atolls in the Western Hemisphere and is 27 miles in length, north to south, and about eight miles wide, east to west. The island itself is 2 1/4 miles in length, 3/4 miles in width at its widest point and approximately 650 acres.

The island has its own fresh water source and is surrounded by water ranging in depth from three to 30 meters within the Atoll, to over 1,200 meters in depth beyond the coral formation. Its lagoons and mangroves provide a habitat for tropical wildlife, such as breeding fish and rare birds.

Long Caye is surrounded by extraordinary walls of coral with miles of marine ecosystems. Underwater explorer, Jacques Cousteau, filmed a documentary for National Geographic, at the world famous Belize Blue Hole, which is just eight miles away from the island and is one of Belize's best known diving attractions. High and low red, black and white mangrove plant communities can be seen throughout the island, with nurseries for marine life as well as serving as a stopover and nesting area for a variety of birds including the Mangrove cuckoo, Green heron, Osprey, Mangrove warbler, Great-tailed grackle and White-crowned pigeon.

For tropical migratory birds, the island serves as an important rest stop during the long flights north and south. As more and more habitats are destroyed or lost to development along the migration routes, islands such as Long Caye play an ever increasingly important role in this seasonal migration. Due to its significant size and extreme eastern location, this island is unique in these open waters of the Caribbean.

Long Caye is a prime location for recreational fishing, scuba diving, snorkeling, bird watching, beach combing and exploring. The areas around the Caye are said to have some of the best diving in the Western Hemisphere, as evidenced by such dive sites as the Long Caye Ridge, Half Moon Wall, Aquarium, Tres Cocos, the Cathedral and Silver Caves.
Directly west of Long Caye, across the Atoll is Half Moon Caye, a Belize National Park managed by the Belize Audubon Society. Half Moon Caye is home to the Red Footed Booby, has white sandy beaches and serves as nesting sites for the protected Green Sea Turtle.

To reduce the impact on the existing plant and animal life, boardwalks have been constructed by the developer and strategically located on the island to elevate the human travel path. All dwellings are to be unobtrusive, site-adaptive in design and must be of elevated stilt construction to allow the water flow of the Caye to be minimally disturbed and to accommodate water lens (water table) and tidal changes. Virtually all lakes, ponds, lagoons, creeks and other wetlands on Long Caye are to remain. Creeks and lagoons swell and the water lens (water table) of the island rises creating new habitats. The diverse flora and fauna of the Caye is dependent upon the essential replenishment of the fresh water supply provided by the seasonal rainfall. Eco-Guidelines have been instituted by the developer to provide policies and procedures so humans can live within and have minimal impact on the natural habitats.

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